DC AG suing delivery company Gopuff for allegedly short-changing employees, denying benefits

WASHINGTON - The D.C. Office of the Attorney General is suing Gopuff delivery, accusing the service of short-changing drivers and denying employee benefits.

Within the gig economy, among businesses like Uber, Amazon Flex and Doordash, there has long been a question of whether the drivers are employees of the company or independent contractors. 

The distinction matters because employers in D.C. are required to pay for family leave, sick days, unemployment insurance and provide minimum wage and if these employers aren't chipping in to these programs, it's the taxpayers left to foot the bill.

What we know:

Now, the D.C. Attorney General says Gopuff has been avoiding paying into those mandatory programs by classifying its drivers as independent contractors. The question is whether these delivery drivers are employees — meaning they are economically dependent on their employer or independent contractors — basically someone who has operational control and runs their own business.

AG Schwalb also accuses Gopuff of unlawfully lowering their operation costs and therefore gaining an unfair business advantage.

"Most businesses play by the rules. They pay people who should be, as employees. They pay them minimum wage, they pay them overtime. They give them benefits, and they pay into government programs. By misclassifying delivery workers as independent contractors, GoPuff was able to avoid all of that. So it was able to undercut its competitors and it's just not fair," said Assistant Attorney General Norman Anderson. 

The other side:

Gopuff denies the claims, saying, "Our model empowers DC residents to earn on their own terms—whether that’s as independent contractors or employees in our micro-fulfillment centers or headquarters. Those who choose to engage with Gopuff as delivery partners tell us time and again that they value the flexibility of independent work and we remain committed to protecting these vital earning opportunities."

The AG'S Office also points out that Gopuff has been ordered to pay both the Department of Labor and the Massachusetts AG for misclassification violations.