San Francisco City Attorney David Chiu is taking legal action against GoShare, the last-mile delivery company, over what he claims is the misclassification of the company's drivers as independent contractors. The lawsuit, filed recently, accuses GoShare of not providing its drivers with legally guaranteed protections, wages, and benefits, as the San Francisco City Attorney's Office reported.
Chiu pointed out the rapid growth of last-mile delivery and its essential role in the U.S. economy, emphasizing that such growth should not come at the cost of workers' rights. "We cannot allow misclassification to take root in this burgeoning industry," Chiu stated, as per the San Francisco City Attorney's Office. The city attorney's lawsuit outlined various ways GoShare allegedly sidesteps legal responsibilities, including the imposition of penalties, and a lack of overtime pay and business expense reimbursements.
GoShare, established in 2015, operates across 35 states and has seen significant traction with over 100,000 businesses and individual customers, with more than 15,000 drivers reportedly completing deliveries for the service. The company requires drivers to follow its policies, use their vehicles for deliveries, and considers them independent contractors, a classification that Chiu and his lawsuit challenge vigorously. The drivers must meet several criteria to work for GoShare, such as owning a suitable vehicle, passing a background check for which they are charged $49, and following the company's strict guidelines and policies.
The lawsuit alleges that GoShare contravenes several state and local labor laws by not offering basic employee protections to its drivers, like overtime, required meal breaks, and paid leave. It also maintains that the company gains an unfair advantage over competitors that adhere to these laws.
