Target-owned Shipt delivery company is being sued by the Minnesota and District of Columbia attorneys General for worker misclassification. CBS NewsThis has been reported. According to the lawsuits, the company was accused of designing its personal shoppers (who pick up and deliver groceries) as independent contractors in order to avoid receiving benefits such as worker’s compensation and state unemployment insurance.
“Increasingly, we’re seeing companies abuse hard-working District residents by fraudulently calling them independent contractors and, as a result, denying them wages and benefits they are legally owed,” said DC AG Karl Racine in a statement.
Shipt denied the allegation. It stated that its workers prefer flexibility and being able to choose their own work hours. Shipt Shoppers are independent contractors. The flexibility that comes from being an independent contractor is the main reason Shipt Shoppers choose our platform to make their money,” spokesperson EvangelineGeorge stated. CBS News. According to its own survey, 80 percent of workers cited flexibility as a top priority.
However, Keith Ellison, Minnesota’s attorney general, stated that the company has control over “virtually all aspects of a shopper’s work”, despite the claim that the workers are independent. He added that workers like others don’t have a clear idea of what they will receive each day and are often not paid overtime or the minimum wage.
The suits seek to recover unpaid wages and paid sick leave, as well as penalties and other damages. Other delivery companies include DoorDashSimilar cases were also faced by Instacart. Instacart recently settled the matter. Pay $46.5 MillionSettlement reached with San Diego City over misclassified workers. Massachusetts was sued earlier in the year. Lyft and Uber were suedFor identifying drivers who are contractors.
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