Instacart has faced several class action lawsuits in recent years, primarily concerning the classification of its workers as independent contractors rather than employees. Here’s a breakdown of the two most notable ones:
1. The San Diego Lawsuit:
- Filed in 2019 by the San Diego City Attorney’s Office, alleging Instacart misclassified its “shoppers” as independent contractors, denying them employee benefits and protections like minimum wage, overtime pay, and unemployment insurance.
- Settled in December 2022 for $46.5 million, with the funds distributed to eligible California shoppers who worked between September 13, 2015, and December 15, 2020.
2. The Sotos Class Action:
- Filed in 2020 in Ontario, Canada, on behalf of full-service shoppers alleging similar misclassification and wage theft issues.
- Discontinued in May 2023, with the reasons not publicly disclosed. However, it’s worth noting that similar lawsuits in other Canadian provinces are still ongoing.
It’s important to remember that these lawsuits only concern specific regions and timeframes. Instacart’s worker classification remains a debated topic, with ongoing legal challenges in various jurisdictions.
