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Target-Owned Shipt Lawsuit over Worker Misclassification - morgan and morgan
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Worker Misclassification Lawsuit

Target-Owned Shipt Lawsuit over Worker Misclassification

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Target-Owned Shipt Lawsuit over Worker Misclassification

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Shipt, an American delivery service owned by Target Corporation, headquartered in Birmingham, Alabama, is being sued over worker misclassification. The lawsuits accuse the delivery company of labeling their "personal shoppers" as independent contractors in a ploy to avoid paying out benefits like state unemployment insurance and workers' compensation. 

The delivery company disagrees with the allegations. In an interview, a Shipt spokesperson claimed that shoppers who worked as independent contractors with Shipt prefer setting their hours, and "the flexibility that comes with being an independent contractor" was one of the main reasons many shoppers chose to earn on their platform. Citing their own survey, they claim that 80% of their workers view flexibility as a critical priority.

However, while the company may push the idea that their delivery/shopper persons are free to choose their work hours and control over their independence, the lawsuit shows that the company has complete control over every facet of the shopper's work. It has been shown that shoppers at Shipt have zero clarity over how much they will be paid day to day and often do not receive the minimum wage and overtime they're entitled to under the Fair Labor Standards Act (FLSA). 

If you believe you or someone you know has been misclassified by Shipt, you may be entitled to recover financial compensation. For more information, contact our attorneys today by completing our free, no-obligation case evaluation form today.


Who Qualifies For A Claim?

  • Employees who worked for Shipt from 2019-Present
  • Drove 500+ miles
  • Worked 500+ hours
  • Worked in at least one of the following states: California, Illinois, Massachusetts, New Jersey, New York, District of Columbia, Minnesota, Vermont, Connecticut

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  • How Many Workers May Have Been Misclassified By Shipt?

    According to Shipt, the total number of "shoppers" who have been labeled as independent contractors is roughly 200,000.

  • What Compensation Could I Seek as a Misclassified Worker?

    Individuals who have been misclassified as independent contractors may seek to recover the following:

    • Paid sick leave owed
    • Payments owed for unemployment insurance 
    • Unpaid wages
    • Other penalties

    For a better understanding of what you may be eligible to receive in the Shipt lawsuit, you can complete our free, no-obligation case evaluation form to speak to one of our attorneys.

  • How Do I Know If I Have Been Misclassified?

    Companies will often take advantage of their workers by withholding the information that could help them understand whether or not they are misclassified. However, thanks to the FLSA, whether you are an independent contractor in the eyes of the law depends on your actual job duties and responsibilities. In order to better understand where you pertain as an employee, the federal government uses a multi-factor test to determine if a worker has been properly classified as an independent contractor. 

    You may be an employee and not an independent contractor if:

    • The company you work for exerts a high level of control over the work you do e.g,. they control where, when, and how your work is done.
    • Your employer sets your work hours. Meaning you do not have the freedom or flexibility to create your own schedule.
    • The company provides the tools and materials needed to perform the job. 
    • You solely work/provide services for this company. 

    If you believe you or someone you know falls into the previously mentioned criteria, or if you suspect your employer has misclassified you, contact one of our attorneys today.

  • What Am I Entitled to as a Worker/Employee?

    According to the Fair Labor Standards Act, once it has been determined that an employer-employee relationship does exist, and the employee is engaged in work that is subject to the FLSA, it is legally required that the said employee must be paid the Federal minimum wage of $7.25 per hour. In most cases, if the employee is subject to working overtime, employers are required to pay time and one-half of the employee's regular rate of pay for all hours worked in excess of 40 per week. 

    Depending on your state laws, minimum wage, and overtime pay rates can vary, which you can discover more about your state here.

  • What Other Companies Have Misclassification Lawsuits?

    Many other delivery companies like Shipt have been under fire in recent years, including DoorDash. These companies have faced lawsuits for similar actions against their workers. Recently, Instacart agreed to pay a settlement of $46.5 million for the city of San Diego over misclassified workers. Earlier this year, both Uber and Lyft were sued by Massachusetts for identifying drivers as contractors.

  • Connect With a Morgan & Morgan Attorney Today

    The FLSA provides minimum wage and overtime pay protections to nearly all workers in the U.S. In order to work around this system, employers will often incorrectly treat workers who are employees and label them as independent contractors. This is known as misclassification. If you are misclassified as an independent contractor by your employer, they may be trying to deny you the benefits and protections to which you are legally entitled to. 

    If you think you or someone you know has been misclassified by Shipt, it is important that you talk to an attorney to see if you've been cheated out of overtime wages. Do not hesitate to contact us. For more information regarding the Shipt lawsuit and to see if you are eligible for compensation, you can contact Morgan & Morgan today by completing our free, no-obligation case evaluation form today.

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Last updated on May 22, 2023

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