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News

Labor/Employment

Jun. 4, 2019

Postmates couriers’ suit claims they’re employees

Two former Postmates couriers filed suit against the San Francisco-based company Monday, claiming the on-demand delivery service misclassified them as independent contractors rather than employees.

Postmates couriers say they're employees

Two former Postmates couriers filed suit against the San Francisco-based company Monday, claiming the on-demand delivery service misclassified them as independent contractors rather than employees.

In a suit filed in the U.S. Northern District Court of California, Devan Costa and Ahmed Wadsworth allege Postmates fails to meet the "ABC" requirements set in the landmark April 2018 Dynamex case and has neglected to pay minimum wage, overtime pay or provide "various other protections required by federal law." Costa v. Postmates Inc., 19-CV03046 (N.D. Cal., filed June 3 2019).

Under Dynamex, workers are considered employees only if they are free from the hirer's control and direction, work outside the usual course of the hirer's business, and engage in the same kind of work as the hirer independently. Dynamex Operations West, Inc. v. Superior Court, 2018 DJDAR 3856.

The suit alleges Costa and Wadsworth qualify as employees because Postmates exercises "significant control" over what deliveries it offers them, pay rates for each delivery, locations for delivery and how to deal with disputes.

Postmates couriers "cannot use managerial skill to increase their profits" because profits are based on number of deliveries completed and "do not operate a transportation-based business independent of Postmates," the suit alleges.

Costa and Wadsworth seek damages, awards, reimbursement of court courts and other relief. Keith A. Custis of Los Angeles-based Custis Law PC represents Costa and Wadsworth in the matter.

-- Glenn Jeffers

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Glenn Jeffers

Daily Journal Staff Writer
glenn_jeffers@dailyjournal.com

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