In a highly anticipated opinion, a Federal Judge in California ruled in favor of GrubHub, an internet food ordering service, finding it properly classified a delivery driver as an independent contractor. In Lawson v. GrubHub, the plaintiff, a delivery driver, alleged that GrubHub violated California’s minimum wage, overtime and employee expense reimbursement laws by misclassifying him as an independent contractor when he was really an employee. He brought the case on behalf of himself and as a representative action pursuant to the California Private Attorney General Act (PAGA). While many other gig economy companies like Uber, Lyft and Postmates have faced similar lawsuits by drivers, they have often settled before trial. Thus, companies that rely on independent contractors, especially on-demand sharing economy companies, were especially interested in the outcome of this bench trial. In her ruling, the Northern District of California judge considered the…
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