Calif. — Personal shoppers for Instacart have filed a potential class action wage and overtime pay lawsuit against the company in California federal court recently. The personal shoppers claim they were misclassified and denied minimum wage and overtime pay in violation of the Fair Labor Standards Act (FLSA) and California state labor laws. The personal shoppers are considered to be independent contractors, which exempts them from both minimum wage and overtime compensation when they work more than 40 hours in a workweek. The personal shoppers are seeking back wages and damages dating back to 2012, the date the company was formed.
Shoppers Claims
Instacart is a grocery delivery service which provides on-demand services through its personal shoppers with 15 locations across the country, including Northern California. The personal shoppers travel to stores, purchase the requested items, and deliver the goods to the customers. According to the personal shoppers’ claims, Instacart classifies them as independent contractors to avoid paying the wages and costs, like gas and workers’ compensation, which would be required if they were classified as employees. In addition to not paying for the personal shoppers’ gas or paying minimum wage, Instacart allegedly gets money from the retailers and a cut from the delivery fee.
Instacart is claiming the personal shoppers are independent contractors because the company is a software company, since its customers complete their entire order with a smartphone app. Since it is allegedly a software company, the grocery delivery service is not an “integral part” of the Instacart’s business. Uber, which is facing a similar lawsuit, has made a similar claim which the judge, also the judge in the Instacart case, does not find credible.
Independent Contractors
Independent contractors are not employees, despite the services they provide to a business. However, in order for the individual to be an independent contractor instead of an employee, the “economic realities” of the independent contractor work must satisfy certain criteria. While there are no clear cut rules an independent contractor will likely have the ability to determine their own hours, method of completing the requested task, and be able to offer the same services to more than one employer. Essentially the independent contractor must be relatively independent in decision making and how their business is conducted.
Also, independent contractors work should not be an “integral part” of the employer’s business. For instance, the independent contractor may provide computer services or cleaning services for grocery chain. But will likely not be able to provide pizza delivery services for a pizza restaurant chain without being classified as an employee.
If you believe you have been misclassified as an independent contractor for Instacart, Uber, or another business contact our overtime pay lawyers today. Our knowledgeable team of overtime pay lawyers will discuss and evaluate your case and can be reached at (855) 754-2795. Or you can complete our Free Unpaid Overtime Case Review form and our experienced legal team will review your claim. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.