Shipt Same Day Delivery Service Faces Wage & Hour Violation Allegations
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In recent news, Shipt faces wage and hour law violation allegations in Ellison v. Shipt, Inc.
The Case: Ellison v. Shipt, Inc.
The Court: Dist. Ct. 4th Jud. Dist. Minn.
The Case No.: 27-cv-22-15991
The Plaintiff: Ellison v. Shipt, Inc.
The plaintiff in the case, Ellison, claims alleged violations of Minnesota wage and hour laws due to Shipt, Inc.’s misclassification of workers as independent contractors. In his complaint against Shipt, the Attorney General alleges that Shipt shoppers must comply with detailed instructions provided by the company and rules on the performance of every aspect of their job duties. Shoppers are also allegedly required to offer shopping services personally, with Shipt prohibiting them from hiring an assistant. According to the complaint, shoppers are also subject to performance reviews and have an ongoing but indefinite relationship with the company. Shoppers must complete both onboarding and corrective training (as necessary), usually need to schedule their work hours in advance and are reimbursed for certain expenses connected to customer orders.
The Defendant: Ellison v. Shipt, Inc.
The defendant in the case, Shipt, Inc., is a same-day delivery service. Shipt is a wholly owned subsidiary of Target, the popular big box store. It offers an app designed to make online grocery delivery easy by connecting Shipt shoppers with nearby stores with the things they need. The company has “shoppers” that they classify as independent contractors that provide same-day delivery of groceries and other household items purchased by users of the Shipt app online platform. The same-day delivery service provider was sued for independent contractor misclassification in Minnesota. Shipt faces allegations of violating the state wage and hour laws due to the misclassification of workers.
The Case: Ellison v. Shipt, Inc.
According to the Attorney General, additional factors considered in the case included:
Shipt can also discharge their shoppers at any time for any reason
Shopper services are only available to the public through the app
Shoppers are unable to generate a profit or a loss based on job performance
Shoppers are not required to make a significant investment in the business
Shoppers are an essential element of the company’s day-to-day business.
Most expect Shipt to deny the allegations of employment law violations.
If you have questions about how to file a California employment law complaint, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.
