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`CHESA BOUDIN, SBN 284577
`District Attorney of San Francisco
`EVAN H. ACKIRON, SBN 164628
`Assistant Chief District Attorney
`SCOTT M. STILLMAN, SBN 267506
`Assistant District Attorney
`White Collar Crime Division
`San Francisco, California 94103
`350 Rhode Island Street, Suite 400N
`
`Telephone: (628) 652-4394
`Email: scott.stillman@sfgov.org
`
`Attorneys for Plaintiff
`The People of the State of California
`
`SUPERIOR COURT OF THE STATE OF CALIFORNIA
`
`CITY AND COUNTY OF SAN FRANCISCO
`
`UNLIMITED JURISDICTION
`
`EGG-20 "58470?
`
`THE PEOPLE OF THE STATE OF CALIFORNIA,
`
`CASE NO.:
`
`Plaintiff,
`
`vs.
`
`COMPLAINT FOR INJUNCTIVE
`RELIEF, CIVIL PENALTIES,
`RESTITUTION AND OTHER
`
`EQUITABLE RELIEF
`
`DOORDASH, INC., and DOES 1 through 10,
`inclusive,
`
`Defendants.
`
`
`Amount in Controversy Exceeds
`$25,000
`
`Plaintiff, the People of the State ofCalifomia (“People”), by and through Chesa Boudin,
`
`District Attorney for the City and County of San Francisco, acting to protect the general public
`
`within the State of California from unlawful and unfair business practices, hereby brings this
`
`action against DoorDash, Inc. and Does 1 through 10 (collectively “DoorDash”), and alleges as
`
`follows:
`
`INTRODUCTION
`
`1.
`
`DoorDash is a business that delivers food, beverages and other items from local
`
`restaurants and stores to nearby customers.
`
`2.
`
`DoorDash employs and pays delivery persons to pick up orders from merchants
`
`and deliver them to customers. DoorDash refers to its deliveiy workers as “Dashers.”
`
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`
`3.
`
`In direct contravention of California law, DoorDash has and continues to .
`
`misclassify its' Dashers as independent contractors when, in fact, they are DoorDash’s employees.
`
`Dashers are employees because DoorDash cannot show that (1) Dashers are free from
`DoorDash’s direction and control, (2) Dashers perform work outside of the usual course of
`
`DoorDash’s delivery business, and (3) Dashers are engaged in an independently established trade
`or occupation.
`‘
`
`4.
`
`DoorDash’s misclassification of its Dashers was no mistake, but instead a
`
`calculated decision made to reduce the costs of doing business at the expense ofthe very workers
`providing-the company’s core Service of delivery: the delivery of merchandise from merchants to
`
`customers.
`
`5.
`
`Under California’s protective labor laws, workers are presumed to be employees
`
`and it is the employer’s burden to justify classifying workers as independent contractors. Despite
`
`this presumption, misclassification of employees remains a persistent economic problem in
`
`California. Speaking to the scale of the problem, the California Supreme Court in Dynamex
`
`Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018) cited to regulatory agencies of
`
`both federal and state governments that found misclassification is a “very serious problem” that
`
`was depriving “millions of workers of the labor law protections to which they are entitled.”
`
`(Dynainex, 4 Cal. 5th at 913.) Additionally, the California Legislature has stated that
`
`misclassification contributes to the rise in income inequality and the shrinking of the middle
`
`, class. (Assembly 131115 § 1(0) & (e).)
`
`6.
`The distinction between'Dashers being classified as employees instead of
`independent contractors is critical. California law affords employees a multitude ofrights that
`
`independent contractors do not enjoy. When employees are misclassified, they are unlawfully
`
`denied their guaranteed rights to minimum labor standards, including minimum wage and
`
`overtime pay, meal. and rest breaks, workers’ compensation coverage, paid sick leave, family
`
`leave, reimbursement for business expenses, and access to wage replacement programs like
`
`disability insurance and unemployment insurance. Additionally, misclassified workers are not
`
`COMPLAINT FOR INJUNCTIVE RELIEF, CIVIL PENALTIES, RESTITUTION AND OTHER EQUITABLE RELIEF
`Page 2
`
`I
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`
`’ protected by most anti-discrimination laws and do not have nearly as robust legal rights to
`
`unionize and to bargain collectively.
`
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`
`7.
`
`The public good also suffers from misclassification: (1) the substandard wagesand
`
`unhealthy working conditions that can result from misclassification often force the public to
`assume the responsibility for the ill effects suffered by workers and their families; (2) the State of
`California (“State”) is deprived of tax revenue used to fund social safety net programs such as
`unemployment insurance; and (3) businesses who properly classify their workers and pay the
`associated costs must compete with c0mpanies who misclassify, allowing unscrupulous
`
`employers to gain an unfair advantage over their law-abiding competitors.
`
`.
`
`8.
`
`In addressing the widespread and systematic issue of emplOyer misclassification‘of
`
`workers as independent contractors, the Dynamex Court, in a unanimous decision, adopted the
`
`straightforward “ABC” test for determining employment status under California’s Industrial
`Welfare Commission (“IWC”) Wage Crders. (Dynamex, 4 Cal. 5th at 916.)
`
`In 2019, the Legislature took action to wrb misclassification by passing Assembly
`9.
`Bill 5 (“AB 5”), which seeks to restore “protections to potentially several million workers who
`
`have been denied .
`
`.
`
`. basic wOrkplace rights that all employees are entitled to under the law.”
`
`(AB 5 § 1(e).) AB 5 codified the ABC test set forth in Dynamex and also expanded the test’s
`application to contexts beyond those at issue‘in Dynamex, to include workers" compensation,
`unemployment insurance, and disability insurance. (See Cal. Lab. Codei§ili§ 2750.3(a)(1), 3351(i),
`Unemployment Ins. Code § 621.) I
`10.
`From the Court’s 2018 decision in Dynamex to the Legislature’s passing of AB 5 to
`the Governor’s execution of the bill in 2019, all three branches of California government have
`made clear that businesses need to follow the ABC test When it comes to the classification of
`
`their workers.
`
`Yet, despite this clear message, DoorDash has and continues to misclass'ify its
`11.
`Dashers throughout California as independent contractors instead of employees.
`12.
`DoorDash cannot meet its burden to establish that its Dashers have been and are
`
`properly classified as independent contractors. Specifically, applying the ABC test, DoorDash
`
`COMPLAINT FOR INJUNCTIVE RELIEF, CIVIL PENALTIES, RESTITUTION AND OTHER EQUITABLE RELIEF
`Page 3
`'
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`—\
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`cannot show that: (A) its Dashers are free from the control and direction of DoorDash in
`
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`21
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`22
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`.23
`
`24
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`25
`
`26
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`27
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`28
`
`connection with the performance of the work, both under the contract for the performance of such
`
`work and in fact; (B) its Dashers perform work that is outside the usual course of DoorDash’s
`business; and (C) its Dashers are customarily engaged in an independently established trade,
`occupation, or business of the same nature as the work performed for the hiring entity.
`
`13.
`
`By misclassifying its Dashers, DoorDash has denied them minimum labor
`
`protections, violated Califomia’s workplace laws, failed to fulfill its tax obligations to the State,
`
`and gained an unfair advantage over its law-abiding competitors. DoorDash’s illegal
`misclassification and accompanying failure to comply with numerous provisions ofCalifornia
`law constitute an unlawful and unfair business practice and, therefore, violate California’s Unfair
`
`CompetitionLaw (“UCL”) as set forth in California Business and Professions Code section
`
`17200 et seq.
`
`JURISDICTION AND VENUE
`
`14.
`
`‘The Superior Court has original jurisdiction over this action pursuant to Article VI,
`
`Section 10 of the California Constitution.
`
`15.
`
`The Superior Court has jurisdiction over DoorDash because: (1) DoorDash is
`
`headquartered in the State of California; (2) DoorDash is authorized to and conducts business in
`and across this State; and (3) DoorDash otherwise has sufficient minimum contacts with and
`
`purposefully avails itself of the markets of this State, thus rendering the Superior Court’s
`
`jurisdiction consistent with traditional notions of fair play and substantial justice.
`
`16.
`
`Venue is proper under Code of Civil Procedure section 393 (a) because DoorDash is
`
`headquartered in the City and County of San Francisco and thousands of the illegal acts described
`
`below occurred in the City and County of San Francisco.
`
`PARTIES
`
`17.
`
`The People of the State of California bring this civil enforcement action by and
`
`through San Francisco District Attorney Chesa Boudin pursuant to California Business and
`
`Professions Code sections 17204 and l7206(a).
`
`COMPLAINT FOR INJUNCTIVE RELIEF, CIVIL PENALTIES, RESTITUTION AND OTHER EQUITABLE RELIEF
`'
`Page 4
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`

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`_\
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`O‘DOONO‘JO'l-D-OON
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`CONCUW-wa—AOCOOONOUCH_-wa—\
`
`18.
`
`Defendant DoorDash, Inc. is incorporated under Delaware law and is headquartered
`
`in San Francisco, California.
`
`‘ 19.
`
`The true names and capacities of the Defendants sued herein as DOES 1 through 10
`
`are unknown to the People. The People will amend the Complaint to allege the true names and
`capacities of such Defendants when ascertained. The People are informed and believe, and
`
`thereon allege, that each of the fictitiously named Defendants is legally responsible in some
`
`manner for the events referred to herein.
`
`20. '
`
`The People are informed and believe, and upon such information and belief allege,
`
`that, at all times herein mentioned, Defendants DoorDash, Inc. and DOES 1 through 10 were all
`
`involved in the decisions and actions complained of herein. Further, the People are informed and
`
`believe, and upon such information and belief allege, that, at all times herein mentioned,
`
`Defendants DoorDash, Inc. and DOES 1 through 10, and each of them, were the agents, .co-
`
`conspirators, parent corporation, joint employers, alter ego, and/or joint venturers of the other
`
`’ Defendants, and each of them, and in doing the things alleged herein, were acting at least in part
`
`within the course and scope of said agency, conspiracy, joint employer,- alter ego status, and/or
`
`joint venture and with the permission and consent of each of the other Defendants.
`
`FACTS COMMON TO ALL CAUSES OF ACTION
`
`I.
`
`DoorDash Operates a Delivery Service
`21.
`DoorDash was first incorporated in 2013 under the name Palo Alto Delivery Inc.
`
`In 2015, the company changed its name to DoorDash, Inc.
`
`22.
`
`As its original name indicates, DoorDash is and has always been a delivery service.
`
`DoorDash’s founders have stated that their “vision is to build the local, on—demand Fedex.”
`
`23.
`
`DoorDash tracks the number of deliveries completed as a metric for its growth and
`
`has publicized its'achievement of becoming “the first on—demand destination to offer food
`
`delivery in all 50 states.”
`
`I
`
`24.
`
`DoorDash’s delivery business uses a website and smartphone application to receive
`
`delivery requests from customers and then dispatches couriers (who it calls “Dashers”) to pick up
`
`COMPLAINT FOR INJUNCTIVE RELIEF, CIVIL PENALTIES, RESTITUTION AND OTHER EQUITABLE RELIEF
`Page 5
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`goods from local merchants, typically restaurants, and deliver them to customers who are nearby.
`
`These deliveries are, for the most part, completed within an hour.
`
`DoorDash solicits and hires its Dashers, who must meet certain eligibility
`25.
`requirements before being approved to work. These requirements include passing a background
`
`check and undergoing training, either in-person or through a training kit that DoorDash mails to
`
`the applicant.
`
`26.
`
`DoorDash also requires its Dashers to agree to a standard-form contract as a pre-
`
`condition of providing deliveries for the company. The contract contains non-negotiable terms
`
`.
`
`and conditions set by DoorDash concerning the Dasher’s work, including boilerplate language
`designating the Dasher as an independent contractor. DoorDash maintains the authority to
`
`terminate Dashers for violating any terms of this take-it-or—leave—it contract or for any reason set
`
`forth in DoorDash’s “Deactivation Policy.”
`
`27.
`
`Once they are approved, Dashers decide when to log into the DoorDash application
`
`(“App”) and can sign up for scheduled delivery shifts. While Dashers decide when to log into the
`
`App, DoorDash controls the assignment of deliveries by determining which Dasher receives
`
`which delivery request and giving the Dasher a short time to accept the assignment. If the Dasher
`
`fails to respond intime or declines, DoorDash reassigns the request and the Dasher must wait to
`
`receive the next delivery assignment. Customers cannot request that the job be performed by a
`
`particular ‘D asher.
`28. '
`DoorDash instructs 'Dashers where requested items are to be delivered. Through
`the App, DoorDash provides the pick-up and delivery routes to the Dasher and the company
`tracks Dashers’ locations during deliveries: in real time on the omnipresent App, providing ‘
`
`customers an estimated time of arrival for their deliveries.
`
`29.
`
`DoorDash unilaterally sets the delivery fees, for which it bills the Customers
`
`‘ directly. DoorDash then pays the Dashers an amount that DoorDash has determined in its sole
`
`discretion.
`
`///
`
`///
`
`C0MPLAINTF0R [NJUNCT1 VE RELIEF, CIVIL PENALTIES, RESTITUTION AND OTHER EQUITABLE RELIEF
`Page 6
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`
`II.
`
`DoorDash Misclassifies Its Dashers as Independent Contractors
`30.
`DoorDash has and continues to misclassify its Dashers as independent contractors
`instead of employees. _
`
`31.
`
`Under California law, workers performing labor or services for remuneration shall
`
`be considered employees. (Cal. Lab. Code § 2750.3(a)(1).) The burden rests with employers like
`DoorDash to establish that the workers they classify as independent contractors meet each
`i
`element of the three-pronged ABC test. Failure to meet any single prong of the test means an
`
`employer cannot classify the worker as an independent contractor, but instead must fulfill the
`
`legal obligations that come with hiring employees.
`
`32.
`. Under the ABC test, a worker can be classified as an independent contractor only if
`the'hiring entity establishes each of the following elements: (A) that the worker is free from the
`control and direction of the hirer in connection with the performance of the work, both under the
`
`contract for the performance of such Work and in fact; (B) that the worker performs work that is
`
`outside the usual course of the hiring entity’s business; and (C) that the worker is customarily
`
`‘engaged in an independently established trade, occupation, or business of the same nature as the-
`
`work performed for the hiring entity.
`
`33.
`
`DoorDash cannot meet this strict standard with respect to its Dashers because it
`
`cannot satisfy any prong of the ABC test.
`
`A.
`
`DoorDash Cannot Establish That Dashers Are Free From DoorDash’s Control
`
`and Direction (Prong A of the ABC Test)
`
`34.
`A
`, Under the ABC test, DoorDash bears the burden of proving that Dashers are free
`from its direction and control in connection with the performance of their work.
`35.
`- Through DoorDash’s omnipresent App and the policies imposed on Dashers by the
`company, DoorDash directs and controls the delivery work of its Dashers.
`36.
`, DoorDash determines the eligibility requirements that Dashers must meet before
`they are allowed to beginmaking deliveries for the company. DoorDash reserves complete
`
`discretion to change those eligibility standards at any point in time.
`
`COMPLAINT FOR INJUNCTIVE RELIEF, CIVIL PENALTIES, RESTITUTION AND OTHER EQUITABLE RELIEF
`Page 7
`
`

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`—\
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`Like other traditional employers, DoorDash requests its workers to sign up for
`37.
`scheduled shifts, which allows DoorDash to ensure it has enough Dashers to fulfill orders during
`
`busy times.
`
`38. When Dashers first log into the App for their shifts, DoorDash restricts their ability
`
`to begin working by first requiring them to answer certain questions, including:
`
`(1) “Do yOu
`
`have your Red card?;” (2) “Is your phone fully charged?;” (3) “Doyou have a hot bag and space
`
`blankets?;” and (4) “Do you have enough gas?”
`
`39.
`
`After Dashers confirm they meet DoorDash’s requirements to start delivering,
`
`Dashers must wait until DoorDash sends them a new delivery request. Dashers cannot
`communicate with prospective customers to initiate any deliveries, but instead DoorDash entirely
`
`controls when, whether, and howmany deliveries DoorDash will route to its‘ Dashers. Because
`
`DoorDash dictates whether and when any individual Dasher is assigned to pick up and-deliver a
`customer order, DoorDash determines whether Dashers actually work.
`40,. When DoorDash assigns a delivery order to a Dasher, the Dasher has a limited
`amount of time to decide whether to accept the delivery request, usually just l20 seconds. If the
`Dasher declines the request or takes too long to decide, then DoorDash withdraws the requestand
`
`sends'it to another Dasher.
`
`Ifthe Dasher accepts the assignment, DoorDash provides the Dasher with
`41 ..
`directions to the merchant. I Once at the business, the Dasher is required to use the App to inform ,1
`DoorDash ofhis/her arrival. Atthat point, DoorDash informs the Dasher, for the first time,
`which customer placed the order andthe details of the order itself. The Dasher must “tap” each
`item listed-on the App as the Dasher picks it up.
`i
`
`42. ' DoorDash provides Dashers with a “Red Card,” which is a prepaid company
`
`sponsored credit card that Dashers use to pay for certain orders. During pick up, if the App
`prompts Dashers to] “Pay with Red Card” or “Place Order,” then Dashers must use the Red Card
`to pay for orders.
`I
`'43.
`After an order has been picked up, DoorDash does not allow the Dasher to proceed
`
`with the delivery until the Dasher confirms through the. App that 116/8116 has double checked that
`
`C0MPLA1NTFOR INJUNCTIVE RELIEF, CIVIL PENALTIES, RESTITUT[ON AND OTHER EQUITABLE RELIEF
`Page 8
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`
`he/she has all items requested. Once confirmed, DoorDash provides the route to the customer
`and the time by which the order needs to be delivered. Dashers’ failure to meet the delivery
`
`times set by DoorDash can lead to lower customer ratings, deactivation or termination.
`
`DoorDash solicits customer feedback about its Dashers through the App. Once a
`. 44.
`delivery'is'complete, the Appprompts the customer to rate the Dasher on a scale of one to five
`stars. Dashers must maintain a certain customer rating or risk suspension or termination. The
`threshold rating level is unilaterally determined by DoorDash and can be altered anytime at the
`
`complete discretion ofDoorDash.
`45.
`Along with closely managing all aspects of the delivery, DoorDash also collects
`significant amounts of data on Dashers’ deliveries. For example, DoorDash is able to track:-(l)
`
`the date and time that Dashers sign-up for and log-in to their shifts; (2) the number of Dashers’
`
`delivery request acceptances and declinations; (3) the number of deliveries Dashers make; (4) the
`date and time of delivery acceptances, declinations, cancellations, pick-ups and completions; (5)
`
`the amount of time to complete a delivery; (6) payment amounts associated with each delivery;
`
`_
`
`(7) the number of deliveries per a Dasher’s shift; (8) tip amounts; (9) customer ratings and other
`
`feedback; and (10) Dashers’ physical locatiOns.
`
`46.
`DoorDash sets forth specific rules and guidelines regarding how Dashers conduct
`themselves throughout the delivery process. These include, but are not limited to, instructing
`Dashers in the following areas:
`I
`
`a. How to handle food pick-ups:
`
`i‘.
`
`"‘When you are at the restaurant, slow down just a bit. Read (not glance!)
`
`at the order on your phone and pay attention to what it is listing. Look for
`
`sides, special instructions, for combos that say ‘1 item’ but could actually
`be 2, 3, 4, or more actual items. It is all in the. app, just make sure it is all
`
`in the bagl”;
`
`ii.
`
`“When the restaurant hands you a bag 'of food and as you start to look
`inside, they say, ‘Don’t worry, it’s all there,’ remain polite and friendly.
`We can say, ‘Oh I know it is. I love picking up from here'because you
`
`-
`
`COMPLAINTFOR INJUNCTIVE RELIEF, CIVIL PENALTIES, REST]TUTIONAND OTHER EQUITABLE RELIEF
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`Page 9
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`1
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`A
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`guys are always accurate! But, I have to, check anyway.’ Then, step out of
`
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`
`the way of the counter and proceed with your count. When it is perfect, let _
`
`them know! Nobody can get mad at you for that right?”;
`
`iii.
`
`“Do not open food containers to inspect items,”
`
`iv.
`
`“Wrap the food in your 'space blanket and keep in your hot bag;” and
`
`v.
`
`I
`
`“What do you do if something is missing? Remain friendly and patient. ‘I
`just want to double check - I think there are supposed to be 2 chili cheese
`
`dogs and I only see one. Can you help me make sure this is right?’”
`
`How long to wait at a customer’s location (“If a customeris unavailable at the
`
`time of drop off, wait 10 minutes after the expected delivery time. If you are not
`
`able to contact them after 10 minutes, you can end the delivery”);
`
`How to communicate with customers (“Keep customers informed — Texting or
`
`calling customers can help you get 5—star customer ratings, even if you’re
`
`running late. Remember, not all customers use a mobile phone, so. don’t be
`
`afraid to give them a call and leave a voicemail”);
`
`How to handle multiple orders along the same route (“Keep post-it notes' and a
`
`pen in your car to mark batched orders with‘individual customer names. This
`
`will help ensure the orders don’t get mixed up”;
`How to deliver alcohol (“UpOn delivery, request the customer ID, and scan it
`into your app. Confirm the customer is 21+ and not visibility intoxicated. If the
`
`customer is underage or visibly intoxicated, or if yOu are unsure about either, do
`
`not deliver the alcohol and contact support immediately”; and
`
`What to do if any issues arise during delivery:
`
`i.
`
`“If the customer asks you todo something beyond info about the status of
`
`the order, direct them to DoorDash support team;”
`
`ii.
`
`If a customer wants to cancel an order, Dashers must “redirect the
`
`customer to reach out to DoorDash Support team;” and
`
`COMPLAINT FOR [NJUNCTIVE RELIEF, CIVIL PENALTIES, RESTITUTION AND OTHER EQUITABLE RELIEF
`Page I 0
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`iii.
`
`“When in doubt: Contact support. Remember the ‘HELP’ or ‘?’ icon to
`
`get support while you dash.”
`
`K
`
`47.
`
`i
`
`' DoorDash unilaterally sets and modifies the delivery fees charged to its customers
`
`and Dashers cannot adjust those fees. In doing so, DoorDash controls Dashers’ earning potential.
`48.
`‘ DoorDash has complete discretion to set the pay scheme and rate of pay for its
`
`Dashers’ services.
`
`49.
`
`DoorDash maintains all billing information for its customers, processes all
`
`payments from customers, and then remits amounts to Dashers. If Dashers have any problems
`
`with payments or tips, for example, Dashers must direct their inquiries to DoorDash, not the
`
`customers.
`
`50.
`
`DoorDash handles customer complaints, creating further barriers between Dashers
`
`and customers. DoorDash disciplines drivers based on these complaints, including suspending or
`
`terminating Dashers.
`
`51.
`
`DoorDash also alters the features on its App whenever it wants and thereby exerts
`
`further control of its Dashers through the App itself.
`B.
`DoorDash Cannot Establish l‘hat Dashers Perform Work That Is OutSide the
`
`Usual Course of DoorDash’s Business (Prong B of the ABC Test)
`
`52.
`
`Under the ABC test, DoorDash must prove that Dashers perform work that is
`
`outside the usual course of DoorDash’s business. '
`
`53.
`
`DoorDash fails to meet prong B of the test because Dashers perform services in the
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`usual course of DoorDash’s business, which is prOViding deliveries.
`
`54.
`
`Because DoorDash is a delivery service, the delivery of items is not outside the
`
`usual course of DoorDash’s business, but is instead the central part of the business.
`
`55.
`
`Dashers do not perform work that is merely incidental to the company’s business.
`
`Quite the opposite, Dashers’ deliveries are integral to DoorDash’s business and their work is a
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`regular and continuing part of the business.
`
`A
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`_ Page 11
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`56.
`
`DoorDash generates its revenue piimarily from customers paying for the very .
`
`deliveries that its Dashers provide. Without Dashers to provide deliveries, DoorDash would not
`
`exist. Dashers’ work lies at the very heart of DoorDash’s operations.
`
`57.
`Consistent with its core service, DoorDash holds itself out as a delivery company,
`including, as described more below, in its ”filing with the California Secretary of State, in its
`
`advertisements, on its websites, and in various public statements. These public self-descriptions
`
`are designed to and do result in the public’s perception of DoorDash’s business being one of
`delivery.
`'
`
`In DoorDash’s most recent Statement of Information form filed with California’s
`58.
`Secretary of State, which asks corporations to “[d]escribe the type of business ofthe
`
`corporation,” DoorDash responded “Delivery.”
`
`59.
`
`The advertising slogans DoorDash has used to market itself indicate that the
`
`cempany is in the delivery business and is not merely a technology company. DoorDash has
`
`trademarked the phrases “Delivering Good” and “Delightful Delivery.” Other marketing taglines
`
`that have appeared on the front page of DoorDash’s websiteinclude “Delivering good spirits,”
`
`“Delivering good moments,” “Delivering good feelings,” and “Delivering good vibes.”
`
`60.
`
`DoorDash has placed advertisements on Facebook touting its delivery service, such
`
`as “DoorDash Delivers the Snacks You Crave & Everyday Essentials You Need Right to Your
`
`Door,” “We’re taking active measures to ensure your food gets delivered to you safe and secure,”
`
`and “Picnic in the park, anyone? You bring the blanket, we’ll take care of the food.”
`
`61.
`In a television ad produced during the shelter—in-place era of the COVID-l 9
`pandemic, DoorDash used the tagline “#OpenForDelivery” to market its services.
`
`‘ 62.
`
`In both the Apple and Google Play App Stores, DoorDash has titled its mobile app
`
`“DoorDash — Food Delivery.” Its self-description then states: “Delivery anywhere you are.”
`
`63.
`
`DoorDash’s own website has stated various descriptions of its delivery services:
`
`a.
`
`“DoorDash is an on—demand delivery service that connects customers with local
`
`businesses;”
`
`b. “Your favorite local restaurants delivered to you;”
`
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`c.
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`“We deliver from the best restaurants;” and
`
`(1. “We’re only as good as our next delivery.”
`DoorDash’s founders have publicly expressed they modeled their business after the
`64.
`delivery company Fedex, stating that their “vision is to build the local, on-demand Fedex.”
`
`The level of micro-management DoorDash exercises over its Dashers further
`65.
`demonstrates that Dashers work delivering items is absolutely essential to DoorDash’s business.
`_ 66.
`Because Dashersprovide a core function of DoorDash’s business, DoorDash
`
`cannot establish that Dashers meet part B of the test.
`
`C.
`
`‘
`
`67.
`
`DoorDash Cannot Establish That Dashers Are Engaged in an Independently
`Established Trade or Business (Prong C of the AISC Test)
`'
`1 Under the ABC test, DoorDash must prove that its Dashers are engaged in an
`
`independently established trade or business.
`68.
`Dashers are not customarily engaged in an independently established trade,
`
`occupation, or business of the same nature as the work performed for DoorDash.
`
`69.
`
`'Dashers do not typically operate their own independent delivery companies while
`
`working for DoorDash.
`70.
`Dashers do not market themselves as professional delivery persons, and-they do not
`take other steps to establish themselves as independent businesses such as incorporation or
`
`licensure. Instead, Dashers wear the hat of DoorDash when they deliver goods to customers.
`
`71.
`
`Delivering—for—hire is not considered skilled work. In soliciting Dashers,
`
`DoorDash’s website stresses that no prior work experience is necessary to start delivering. At no
`time during the course of Dashers’ deliveries do they make imp01tant business decisions that
`would serve their entrepreneurial interests. Dashers simply make the requested delivery, generate
`
`income for DoorDash and then get paid by DoorDash. There is no value in an independent
`relationship with any one customer since it will not lead to economically‘beneficial future I
`business.
`7
`
`72.
`
`In fact, DoorDash uses an atomized business model that effectively prevents
`
`Dashers from providing delivery services as independent business owners. For instance,
`
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`OLOOONCDU‘l-POON
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`NNI\JNNNNNIN_\_\.4_\_\_\...\_\_|_|m\lO?01#OJN_—‘O(Om\l03(7|-b00N—‘
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`DoorDash tightly controls and limits the relationship Dashers and customers have with each
`
`other. Dashers and customers only receive a small amOUnt of obfuscated information on the
`
`other. The Dasher and customer can only contact each other during the delivery, and even then,
`
`the phone numbers of each are masked on both sides. In this way, Dashers and customers are
`
`prevented from future contact and deliveries. The App also has no way to allow customers to
`have particular Dashers make their deliveries (and vice versa, Dashers cannot favorite or request
`
`to deliver to certain customers).
`
`III. By Misclassifying Dashers, DoorDash Has and Continues to Engage in Unlawful and
`
`Unfair Business Practices
`
`73.
`
`As described above, DoorDash cannot overcome the presumption under California
`
`. law that its Dashers are employees because it cannot carry its burden on even a single prong of
`the ABC test, let alone meet the high burden of establishing all three prongs.
`
`74.
`
`Yet, DoorDash has and continues to unlawfully misclassify'its Dashers as
`
`independent contractors.
`75.
`DoorDash’s incorrect and illegal designation of its Dashers as independent
`
`contractors is more than a technical mistake with little consequences. Quite the opposite,
`
`DoorDash’s misclassification strips Dashers of essential workplace protections, lowers their
`
`income, deprives them of social safety net benefits, causes lost tax revenues to the State, and
`
`harms other businesses who. classify their workers properly.
`
`A.
`
`DoorDash’s Misclassificatio'n of Dashers Leaves Them Without Legally-
`
`Entitled Workplace Protections
`
`76.
`
`' By wrongly characterizing Dashers as non-employees, DoorDash has violated
`
`various California laws meant to protect workers from exploitative business and labor practices.
`
`DoorDash’s violations of California law with respect to its Dashers include, but are not limited
`
`. to:
`
`a. Failing to guarantee and pay Dashers minimum wage under State and local
`
`laws;
`
`b. Failing to pay Dashers overtime pay as required by State and local laws;
`
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`Page I 4
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`C
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`.
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`c. Failing to provide Dashers with meal and rest periods as required by State and
`
`local laws;
`
`(1. Failing to furnish Dashers with itemized wage statements as required by law;
`
`6. Failing to accrue paid sick leave benefits and make health care expenditures for
`
`its Dashers;
`
`f. Failing to pay or reimburse Dashers for their necessary business expenses in .
`
`performing their work; and
`
`g. Failing to remit contributions or take other mandatory actions under the State’s
`
`'social insurance programs, including, but not limited to, unemployment
`
`insurance, disability insurance, paid family leave, workers’ compensation, and
`
`San'Francisco’s Paid Parental Leave Ordinance.
`
`77.
`
`Dashers’ misclassification also means (1) they are not protected by most State and
`
`local anti-harassment and discriminationlaws, (2) they do not receive any employer-provided
`
`. retirement benefits, and (3) most laws around the right to. form a union and collectively bargain
`
`do not apply to them.
`
`.78.
`
`Not only does DoorDash’s legal violations leave Dashers witho