Lawsuit alleges Shipt misclassified delivery workers to avoid cost of employment protection
ST. PAUL, Minn. -- Minnesota Attorney General Keith Ellison announced Thursday he filed a lawsuit against a popular grocery delivery service for allegedly misclassifying its delivery workers.
The lawsuit alleges Shipt, Inc. misclassified its delivery drivers, which the company calls "shoppers," as independent contractors in order to avoid the cost of providing them employment protection guaranteed by Minnesota law.
The lawsuit says the misclassification prevents employees from accessing state unemployment insurance and workers' compensation benefits.
In Ellison's investigation, he says that despite Shipt's claims their shoppers are independent contractors, Shipt controls "virtually every facet of a shopper's work."
District of Columbia Attorney General Karl Racine also recently filed a similar lawsuit against Shipt.
Ellison encourages anyone who works for Shipt or any employer they feel is misclassifying them to contract his office or file an online complaint.
Shipt, which is owned by Minnesota-based Target Corporation, released a statement to WCCO.
"Shoppers with Shipt are independent contractors, and the flexibility that comes with being an independent contractor is the primary reason Shipt Shoppers choose to earn on our platform," spokesperson Evangeline George said. "We strongly disagree with the action taken by the Minnesota Attorney General, and we'll continue advocating for Shoppers and the opportunity to earn flexible income across Minnesota."
