Tina Bellon

(Reuters) – DoorDash Inc, a delivery company, has paid more than $5million to San Francisco to resolve an investigation into labor law violations. The bulk of this money will go to delivery workers.

According to San Francisco City Attorney David Chiu, DoorDash will be paying more than $5.3million under the agreement. Nearly 4,500 DoorDash employees who delivered in San Francisco between 2016-2020 will receive $5.1 million.

Chiu released a statement saying that the era of inequality is upon us.

DoorDash didn’t admit to any wrongdoing in the settlement, but it did release a statement saying it was proud about the flexibility it provided for earning.

According to the company, “While we don’t deny any wrongdoings, we believe that this settlement provides a fair compromise that will permit us to concentrate on providing the best possible experience for Dashers.”

In 2019, the city began a formal investigation of DoorDash after media reported that it was using customer tips in order to subsist workers’ base salaries.

DoorDash is accused of violating San Francisco’s Health Care Benefit and Paid Sick Leave laws. DoorDash claimed that workers were misclassified as independent contractors rather than employees.

This settlement was part of larger battle between lawmakers and gig economy businesses. It culminated in the California ballot initiative in November 2020. During which, voters confirmed gig workers’ independence while giving them some benefits.

Fight over status of Uber, DoorDash workers (NYSE:) Lyft Other gig businesses continue to exist in the United States, Canada, and Europe. Many companies claim that workers don’t wish to be employed and want the flexibility of on-demand jobs.