Food delivery apps face lawsuits over employee benefits

GrubHub Raises $192 Million Pricing IPO Above Marketed Range

The fight over employee benefits when it comes to app-based on-demand services continues. The Chicago Tribune reports that food delivery companies GrubHub, DoorDash and Caviar were all hit with separate lawsuits in San Francisco this week. The suits allege that each failed to offer employee benefits after treating them like full-time workers. In other words, the companies misclassified employees as contractors. If that sounds familiar it's because Uber facing a similar lawsuit in San Francisco over its drivers. In fact, the same attorney that represents plaintiffs in proceedings with Uber and Lyft is working with the delivery drivers in these three new cases. Like Uber, the suits against GrubHub and DoorDash are class actions while the demand arbitration request with Caviar is on behalf of a single driver. Based on the filings, GrubHub allegedly treated its workers as employees but failing to offer proper benefits like reimbursements for gas, parking and phone data. It also allegedly failed to meet wage requirements and offer overtime pay.

[Image credit: Jin Lee/Bloomberg via Getty Images]