Instacart's $46.5M gig worker lawsuit payout set to begin

Distributions are set to begin in Instacart’s $46.5 million settlement with its drivers, following the agreement between the San Francisco-based tech company and the city of San Diego in October, according to a press release from San Diego City Attorney Mara W. Elliott.  

That settlement stems from a lawsuit filed by the city in 2019 claiming Instacart's delivery drivers were underpaid between 2015 and 2020, and should be classified as employees, rather than independent contractors, under California law.  

The payout will be divided among more than 300,000 Instacart drivers covered by the suit.

“It’s gratifying to see hardworking Instacart shoppers receive the compensation they deserve. At the height of COVID-19, they provided a lifeline to California families,” Elliott said in a statement. “My office will continue to look out for them and other working families.” 

Fund administrator Simpluris is overseeing the distribution and will email workers about their eligibility. More information is available on the City Attorney’s website at www.sandiego.gov/CityAttorney and CaliforniaShopperSettlement.com. 

The lawsuit came in response to a California Supreme Court ruling in Dynamex vs. Superior Court that set a new standard for determining a worker’s status. That court decision was later codified into state law.

The settlement also entails that $6 million will be paid to the City Attorney’s Consumer Protection Prosecution Trust Fund. In October, Instacart released a statement in response to the settlement: "We’re pleased to have reached an agreement with the City of San Diego. Instacart has always properly classified shoppers as independent contractors, giving them the ability to set their own schedule and earn on their own terms. We remain committed to continuing to serve our customers across California while also protecting access to flexible earnings opportunities for Instacart shoppers.”