Postmates reached a settlement with thousands of current and former drivers after it classified them as independent contractors rather than employees.
Postmates will pay drivers differently in the settlement, depending on which state they’re in, due to the nuances of each jurisdiction’s labor laws.
Postmates and its couriers reached a settlement last year over an allegation that the food-delivery service incorrectly classified drivers as independent contractors rather than employees. But a letter to the couriers shows that each of their pieces of the pie depend largely on the location of their deliveries.
Postmates agreed to the $8.75 million settlement against thousands of current and former drivers across the U.S after denying the allegation that the classification of its drivers broke laws or regulations. About $2.8 million of the total fund will account for fees, and the rest will be allocated to those who submit claims in response to the letter.
In the terms of the settlement, a breakdown of the compensation shows that four states in particular would make the most per mile, with Massachusetts leading the pack, due to the nuances of each jurisdiction’s labor laws:
The Settlement Fund will be allocated to Class Members proportionally to their delivery miles while …read more
Source:: Businessinsider – Technology