Instacart class action lawsuit have been filed concerning the company’s alleged misclassification of its workers as independent contractors and its policy regarding passing on tips to workers.
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Past Instacart Class Action Lawsuit and Settlement
In 2017, Instacart settled a class action lawsuit for $4.65 million which was brought on behalf of 31,000 Instacart shoppers alleging that the company had misclassified them as independent contractors and failed to reimburse business-related expenses, reports Tech Crunch. As part of the class settlement, Instacart also agreed to clarify to customers the difference between a service fee and tip. The settlement agreement also prohibited Instacart from terminating Instacart workers from the app without cause.
The recent class action lawsuit against Instacart focuses more on its tipping policy, noting that Instacart often does not pass on customers’ tips to drivers. Rather, according to the lawsuit, Instacart often uses customer tips to defray its cost from guaranteeing Instacart shoppers a certain amount for each job — currently $10 per job, according to Tech Crunch. For example, one Instacart worker complained that the company only paid 80 cents for a job, reports TC. The company responded that it only paid 80 cents because the customer had left a $10 tip, so it paid the Instacart shopper only 80 cents (for a total of $10.80).
Using this policy, Instacart claims that it passes on all tips to its workers. But Instacart’s model of using two alternative formulas for paying its workers causes confusion for many Instacart customers and shoppers, who think that a tip will increase the shopper’s earnings (above the guaranteed amount).
In a recent DoorDash lawsuit, DoorDash has been accused of violating the law by using a similar tipping policy.
Our Instacart Class Action Attorneys
Gibbs Law Group is a California-based law firm committed to protecting the rights of clients nationwide who have been harmed by corporate misconduct. We represent individuals, whistleblowers, employees, and small businesses across the U.S. against the world’s largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases involving consumer protection, data breach, digital privacy, and federal and California employment lawsuits. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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