DoorDash will pay $5.3 million to San Francisco to settle allegations over benefits violations

The image is called "chorus image" and is on thecdn.vox-cdn.com.

DoorDash settled with San Francisco for $5.3 million.

Alex Castro is the illustrator for The Verge.

DoorDash will pay $5.3 million to the city of San Francisco to settle allegations that it failed to provide healthcare and paid sick leave to delivery drivers. Most of the money will be used to reimburse drivers who made deliveries in the city before a new state law took effect.

California voters approved a law in November of 2020 that allows companies like DoorDash, and ride-sharing companies like Uber, to treat workers as independent contractors. The law is in effect pending an appeal after a judge ruled that it was unconstitutional.

The San Francisco City Attorney David Chiu told the San Francisco Chronicle that they believed DoorDash employees should have been classified as employees. The perspective of the city is not part of the settlement. Most drivers will get between $500 and $1,000 as part of the settlement, and the Chronicle reported that both sides agreed to the settlement to avoid a lengthy court battle.

Briana Megid, a spokeswoman for DoorDash, said in a statement that the company is proud of the flexible earning opportunities and protections afforded to Dashers in California. While we deny any wrongdoing, we feel that this settlement represents a fair compromise that will allow us to focus on providing the best experience for Dashers.