who first reported the news, the company has continued to classify its delivery workers as independent contractors instead of employees in direct defiance of a California law passed to prevent companies from doing just that.
The state's AB5 law went into effect in early January 2020 and strives not only to require companies to classify gig workers as employees but also to pay local, state, and federal taxes in accordance with that classification, asnotes. Boudin's civil lawsuit is asking for DoorDash to classify its delivery workers, known as "Dashers," as employees.
"Today's action seeks to disrupt the essential services Dashers provide, stripping hundreds of thousands of students, teachers, parents, retirees and other Californians of valuable work opportunities, depriving local restaurants of desperately needed revenue, and making it more difficult for consumers to receive prepared food, groceries, and other essentials safely and reliably," DoorDash Global Head of Public Policy Max Rettig said in an email to Business Insider.
San Francisco tech companies — including Uber, Postmates, and Lyft — and their business models rely heavily on gig workers. By doing so they're able to avoid the higher costs that come with doling out wages and benefits typically reserved for full-time employees.
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And now they'll all be out of work
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