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Article

30 Nov 2021

Author:
Daniel Wiessner, Reuters

USA: Federal Judge dismisses proposed class action against Postmates for misclassification of workers after plaintiffs settle in arbitration

"Arbitration deals end Postmates misclassification row in Mass.", 29 Nov 2021

A Boston federal judge on Monday dismissed a proposed class action accusing Postmates Inc of misclassifying couriers as independent contractors after the three named plaintiffs settled with the company in arbitration.

U.S. District Judge Richard Stearns in a brief order affirmed the arbitration awards and dismissed the 2020 lawsuit, about eight months after rejecting the plaintiffs' bid to keep the case in court by claiming they were involved in interstate commerce and exempt from the Federal Arbitration Act.

The plaintiffs, represented by Lichten & Liss-Riordan, had claimed they should have been classified as Postmates' employees under Massachusetts law and were owed the minimum wage, paid sick leave and reimbursements for work-related expenses.

Under the settlements approved by an arbitrator, the three plaintiffs were paid a total of $4,750.

The case is one in a series of lawsuits filed across the country by delivery and "gig economy" workers claiming they were improperly treated as independent contractors.

Stearns in a March ruling said Postmates couriers were not exempt from the FAA because they were merely providing delivery services from local retailers.