According to CBS News, the attorneys general of Minnesota and the District of Columbia are suing Target-owned Shipt for labour misclassification. The complaints allege that the corporation misclassified its “personal shoppers” (who collect and deliver grocery items) as independent contractors in order to avoid paying benefits such as state unemployment insurance and worker’s compensation.
Shipt stated that it disagrees with the charge and that the majority of its employees prefer the ability to choose their own hours. “Shipt Shoppers are independent contractors, and the freedom that comes with being an independent contractor is the key reason Shipt Shoppers choose to earn on our platform,” Evangeline George, a spokesperson for Shipt, told CBS News. According to its own poll, 80 percent of its employees rated such flexibility as a top priority.
Despite maintaining that the workers are autonomous, Minnesota Attorney General Keith Ellison stated that the corporation controls “almost every aspect of a shopper’s employment.” “Unlike other employees, these individuals have no idea how much they will be paid on a daily basis, and they frequently do not receive the minimum wage and overtime to which they are entitled,” he said.
The lawsuits seek to recoup unpaid sick leave, unpaid wages, unemployment insurance payments, fines, and other benefits. Similar measures have been taken against other delivery businesses, including DoorDash, and Instacart recently agreed to pay $46.5 million in a settlement with the city of San Diego for misclassified workers. Massachusetts sued Uber and Lyft earlier this year for misclassifying drivers as independent contractors.
