The Most Recent DoorDash Lawsuits In 2023 and What They Mean

DoorDash is a great food delivery service for getting food delivered promptly when you do not feel like going out.

It gives you local restaurant options, upfront pricing for delivery, and utilizes reputable drivers.

That does not mean it has not had issues from time to time.

Those issues have resulted in specific actions that have involved district court, law enforcement, and even politicians.

Here is a rundown of the most prominent legal cases DoorDash and other delivery companies are contending within 2022.

Have There Been Lawsuits Against DoorDash?

There have been several lawsuits brought against DoorDash.

There has been a DoorDash lawsuit brought by drivers, restaurants, government authorities, consumer protection departments, and customers.

Lawsuits are not unique to DoorDash Inc.

Other food delivery services have faced lawsuits over labor law violations, their restaurant rosters, charges, how tips are handled, etc.

The lawsuits have been filed in New York City, San Francisco, Chicago, and several other places across the USA.

Suits have alleged deceptive business practices, fraud, negligence, and violation of labor laws.

DoorDash Drivers Class Action Settlement

This suit was resolved with varying degrees of satisfaction.

The plaintiffs in the case feel that the settlement was far too low in terms of what workers will receive in settlement awards, so there might be subsequent action.

It works out to be about $130 per individual that joined the suit, provided that they adhered to the individual state requirements for eligibility.

The lawyers in the case will receive about $28 million of the $100 million settlement.

What it Was About

The plaintiffs allege that DoorDash was misclassifying them as independent contractors in the states of California and Massachusetts.

The settlement culminated in several class-action lawsuits filed over allegations of DoorDash violating labor laws and engaging in deceptive business practices.

Essentially, the plaintiffs allege DoorDash claimed its drivers, called “dashers,” were independent contractors, which saved the company money in wages and benefits.

The plaintiffs allege that the law does not allow a company to avoid paying fair wages and benefits by classifying everyone as an independent contractor.

In California, Massachusetts, and Illinois, DoorDash drivers were supposed to be classified as employees and receive the same rights and protections as other employees at other companies.

The drivers say they were responsible for costs related to DoorDash deliveries, including but not limited to gas, insurance, mileage, and wear and tear on their vehicles.

The driver says this was done, despite the company not paying them minimum wage.

The drivers allege that despite the lack of benefits and protection and low wages, they must follow precise instructions or risk being terminated.

Who Was Suing?

The company terminated DoorDash drivers and others for failing to maintain an adequate customer rating.

The drivers came from three states: California, Massachusetts, and Illinois.

What Were They Suing For?

The drivers were suing for fair compensation and forcing the company to classify them legally, which, in many cases, would result in them being classified as employees.

The settlement would mean that DoorDash would have to adhere to state and federal labor laws.

It also would mean that DoorDash drivers would enjoy increased wages and benefits.

What Was the Result?

The results were a settlement of $100 million that ended several lawsuits and broke down as follows: Lawyers get $28 million.

Drivers get the balance, pooled, and distributed to suit members.

Additional funds would be distributed evenly among suit members based on a formula.

DoorDash agreed to classify employees moving forward correctly.

What Does This Mean for DoorDash?

That remains to be seen.

Ideally, it means that the plaintiffs will be reclassified and enjoy the rights and benefits that employees of other companies receive.

If followed, it will likely reduce DoorDash’s overall profitability because the company will have to pay minimum wage and unemployment insurance.

It will also give drivers leverage in work requirements, labor union disposition, dispute recourse, and future issues related to DoorDash’s corporate policy.

DoorDash Tipping Lawsuit

DoorDash settled a lawsuit with the Washington DC Attorney General for $2.5 million, resolving allegations it used tips to subsidize driver pay.

The tipping issue has led to a class-action suit against DoorDash for its tipping policy.

What it Was About

DoorDash was widely criticized for using customer tips as part of a driver’s minimum base pay.

The practice was an unfair labor practice, but it also misled customers who thought their driver was receiving the tip above and beyond what DoorDash paid them.

The DC Attorney General alleged that DoorDash had violated the City’s Consumer Protection Procedures Act.

Who Was Suing?

The plaintiff, in this case, was the Washington, DC Attorney General Karl Racine.

What Were They Suing For?

DoorDash took tips left by customers and applied them to the driver’s regular pay, thus reducing the company’s outlay of cash in hourly payments.

The customer intended, and it was represented that the tip was in excess of any fees or charges.

DoorDash’s policy directly contradicted that assumption and implication.

DC sued to force DoorDash to return the tip monies to the drivers.

The company settled rather than risk a trial.

The settlement led to other suits that have been enveloped in a class action.

What Was the Result?

DoorDash settled and agreed to pay $2.5 million to settle the lawsuit.

It also agreed to clarify its tipping policy to customers and its drivers.

What Does This Mean for DoorDash?

DoorDash will have to pay some tip money back, likely more as other suits are filed.

However, any settlement will be significantly less compared to what the company made.

A settlement would be another chip in the reputation of the company.

Chicago DoorDash Lawsuit

The City of Chicago sued DoorDash and GrubHub for “deceptive and unfair business practices.”

The suit came about after many complaints from restaurants and consumers.

What it Was About

The suit alleges that DoorDash commits several violations in advertising, representation, tipping, and misrepresenting a delivery fee mandated by the City of Chicago when no such Chicago fee existed and no delivery workers were authorized to collect it.

Specifically, the City alleges DoorDash:

• Advertises order and delivery services from unaffiliated restaurants leaving the local restaurants and restaurant owners and staff to address complaints from customers that DoorDash drivers cause

• DoorDash Inc employs a “bait and switch” process of getting customers to initiate a purchase by promising small fees that are increased at the end of the transaction

• Hide menu prices that are significantly higher than prices the restaurant charges leading to customer service and deceptive business practice issues

• DoorDash misallocates tips to the detriment of its drivers

Who Was Suing?

The plaintiffs in the suit include Mayor Lori Lightfoot, Acting Business Affairs and Consumer Protection (BACP) Commissioner Kenneth Meyer, and Corporation Counsel Celia Meza.

The suit is brought on behalf of DoorDash customers, the City of Chicago, and Chicago businesses and will be heard in Cook County Circuit Court.

What Were They Suing For?

The city asks that DoorDash be made to adhere to existing policies, alter deceptive policies, cease deceptive advertising and operations, pay a minimum of $2,000 per infraction, and for DoorDash to “disgorge” profits made by the violations.

What Was the Result?

The suit is ongoing.

What Does This Mean for DoorDash?

On its face, this could mean a significant payout on DoorDash.

It also means more public relations problems, specifically with the fee representation.

While the rest are somewhat subject to interpretation or proprietary policy, that seems to be a clear deceptive practice.

Interestingly, DooDash, in their initial statement about the suit, said nothing about the fee.

How this is resolved will also be instructive to other food delivery app companies.

DoorDash Wrongful Death Lawsuit

There have been multiple lawsuits, including wrongful death lawsuits against the food delivery platform for accidents, injury, and death caused by DoorDash drivers.

This portion of the article covers one accident involving a DoorDash driver in October of 2020.

In this case, DoorDash was sued last August for wrongful death in the case where a DoorDash driver struck and killed a woman.

What it Was About

A DoorDash Driver allegedly looked away from the road to verify a delivery address, lost control of his vehicle, and struck a woman working in her yard.

The delivery driver was charged with drug possession and vehicular homicide.

Further, in conjunction with other wrongful death suits brought against DoorDash, it is alleged the driver was responding to a text from the food delivery company or was reading directions about the delivery in the food delivery app.

DoorDash and the driver are named as defendants.

Additionally, the Voyager Indemnity Insurance Company and Goauto Insurance company are named defendants.

The suit alleges that DoorDash should have known the driver could not operate his vehicle properly, did not look into the driver’s background adequately, and should have known the driver was a safety risk.

Who Was Suing?

The suit is being brought by the family of the deceased.

What Were They Suing For?

The family seeks more than $50,000 in damages.

What Was the Result?

The lawsuit is pending.

What Does This Mean for DoorDash?

Presumably, given the driver was arrested for drug possession and found to have drugs in his system, DoorDash will revise (or has revised) its hiring policies for drivers.

Additionally, depending on the disposition of the criminal charges, DoorDash may be held liable for more than the amount asked in damages.

How to File a Lawsuit Against DoorDash

Filing a claim against DoorDash follows the process of any other type of lawsuit.

That process depends on the type of case you are filing.

The best first step is to talk to an attorney and see if your case is valid and if you can file it against the company.

Do You Have a Case?

That is impossible to know without knowing the details of the case.

An attorney will give you a free consultation, and you can describe the details of your case.

They then will tell you if you have a case, if it is worth pursuing, whether they can take the case, and reasonable expectations for an outcome.

Step by Step Instructions

The only step you need to take is to talk to an attorney and present your allegations.

There are consumer protection groups that can help you, but they likely will direct you to an attorney if your case has merit.

You can do either online.

DoorDash does offer dispute resolution services on their website, but if you have any legal case or any case that could result in damages awarded to you, you need to contact an attorney.

If you discuss your situation with anyone from DoorDash, do not agree to anything until you discuss it with an attorney.

Final Word

DoorDash is facing several lawsuits of varying importance and potential impact.

If you meet certain criteria, you might be able to join a class-action lawsuit, or you may have a case to bring on your own.

Regardless, the proper first step is to discuss your situation with a lawyer; the consultation is free, and you will find out for sure if you have a chance at winning a case against DoorDash.