Postmates Settles Suit Over Massachusetts Drivers' Tips

Law360 (July 1, 2019, 8:03 PM EDT) -- On-demand delivery app Postmates and its Massachusetts drivers and riders settled a federal class lawsuit Monday over allegations that the company failed to pass along delivery fee tips, ending the latest skirmish on the sprawling gig economy battlefield.

Postmates, which was formed in 2011 and bills itself as a national pioneer of the on-demand delivery industry, agreed to an $85,000 payout in the settlement "solely for purposes of settlement," without admitting to liability or unlawful conduct in the case, according to a filing in the U.S. District Court for the District of Massachusetts.

Those who delivered for Postmates as independent contractors...

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