Postmates' $9M Misclassification Deal Gets OK'd

By Dorothy Atkins (September 1, 2017, 7:19 PM EDT) -- A California federal judge on Friday preliminarily approved Postmates Inc.'s $8.75 million settlement that would resolve a proposed class action claiming the on-demand delivery service misclassified its couriers as independent contractors and paid them below minimum wage.

U.S. District Judge Jeffrey S. White said in his order that claims brought on behalf of workers in the so-called gig economy are still relatively novel. No California court has definitively established whether the gig workers are, in fact, employees or independent contractors, the judge said. Therefore, it's not clear that the Postmates couriers would prevail and recover damages at trial, particularly since Postmates' arbitration...

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