Attorney General Karl A. Racine today announced a new lawsuit against Shipt, a gig company that offers shopping and delivery services, for denying full-time workers basic employment rights by deploying an increasingly prevalent misclassification scheme through which employers cheat employees out of hard-earned wages and benefits, deny safety protections, avoid legal obligations to pay into public programs, and shift routine business costs onto workers.
“Increasingly, we’re seeing companies abuse hard-working District residents by fraudulently calling them independent contractors and, as a result, denying them wages and benefits they are legally owed,” said AG Racine. “At every step of the way Shipt cheats, putting profits over workers and violating its employees’ basic rights just to make another dollar. We’re using all our authority to level the playing field and hold Shipt accountable for trying to cheat DC workers.”
Another state attorney general is expected to file a similar lawsuit against Shipt later today.
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