California Delivery Service Industry Employment Lawyer

One of the most prominent and emerging employment sectors in California has been the delivery service industry. Commonly referred to as the “gig economy”, this sector of employment is one of California’s most misunderstood. Yet, this industry is a vital component of the state’s economy and provides employment opportunities for a significant number of people, especially in one of California’s many vast urban areas. The industry encompasses a wide range of services, including package and parcel delivery, food delivery, and courier services.

In recent years, the delivery service industry in California has experienced significant growth due to the increasing demand for e-commerce, online shopping, and food delivery services. But because there are distinctions to be made between which of these workers are actual employees and simply independent contractors, the legal ramifications for these workers are immense. Thus, it’s extremely important to understand how you are classified to figure out which of California’s employment laws apply to you and your situation.

At Maison Law, we are dedicated to making sure every worker in California is treated fairly and legally. Our team of experienced California employment lawyers can help you if you feel your rights are being violated in the workplace and can make sure you’re able to take the steps necessary to remedy the situation. We can also explain and provide a full range of legal options to you. If you would like to learn more, contact us today for a free consultation.

Employee Versus Independent Contractor in California

Perhaps the most important distinction for a worker in California’s delivery service industry is whether they are an employee or independent contractor. California has specific laws that determine whether a worker is classified as an employee or an independent contractor. These laws are set out in the California Labor Code, with California courts establishing a three-part test–known as the “ABC” test–to determine whether a person is an employee or independent contractor. To be classified as an independent contractor, all three parts of the ABC test must be met:

A. The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

B. The worker performs work that is outside the usual course of the hiring entity’s business.

C. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

If any of these three parts of the test are not met, the worker must be classified as an employee. This classification has significant legal and financial implications, as employees are entitled to various legal protections and other benefits.

Moreover, employers who misclassify workers as independent contractors instead of employees can face stiff legal consequences. But in order to understand these implications, it will be helpful to take a closer look at the actual service industry and employment in California.

Delivery Service Industry and Employment in California

The delivery service industry in California is a booming business, with thousands of people employed in a variety of capacities. Industry leaders, such as Uber Eats, GrubHub, and Instacart have grown rapidly in the state and are responsible for hiring thousands of delivery drivers, couriers, and other staff.

The increased demand for delivery services has created many opportunities for people looking for employment in the industry. The backbone of the business–delivery drivers–are in extremely high demand. Moreover, these workers are tasked with the main thrust of the business by picking up orders from restaurants and other locations, then dropping them off at customer homes or businesses. In addition to delivery drivers, the industry offers a wide range of different jobs, like:

• Delivery Driver
• Package Handler
• Courier
• Dispatcher
• Warehouse Associate
• Delivery Coordinator
• Order Picker
• Customer Service Representative
• Route Planner
• Freight Handler

These positions require different levels of experience, education, and qualifications, so there is always an opportunity for someone looking to enter the industry. Again, the important point here is which workers are independent contractors and which are employees. Generally speaking, though, jobs like delivery drivers and couriers are usually independent contractors because they are often working on their own. On the other end of the spectrum, customer service workers, coordinators and warehouse associates are typically employees of these companies. By applying the ABC test, it provides a definitive answer.

California Employment Law and the Delivery Service Industry

Working in the delivery service industry in California provides significant opportunity, but at a very basic level, the legal protections and rights that are provided to workers in California may not be extended to independent contractors. Under the law, these workers are not considered employees. At the same time, there are certain legal protections that even these workers have.

Wage and Hour Laws

California wage and hour laws govern the minimum wage, overtime pay, meal and rest breaks, and other compensation-related issues for employees. These laws are designed to ensure that employees are paid fairly for the work they perform.

As it applies specifically to the delivery service industry, this section of laws covers the following:

• Under California law, tips and gratuities belong to the employee who receives them. Employers may not take any portion of an employee’s tips or use them to offset the employee’s wages.
• California’s minimum wage is currently $15.50 per hour, with employers being legally required pay employees at least the minimum wage for all hours worked.
• California law requires employers to pay overtime to non-exempt employees who work more than 8 hours in a day or 40 hours in a week. Overtime pay is one and a half times the regular rate of pay.
• Employers must provide employees with their final paycheck on their last day of work or within 72 hours of their last day, depending on the circumstances.
• Employers must provide non-exempt employees with a 30-minute meal break if they work more than 5 hours in a day, and a second meal break if they work more than 10 hours in a day. Employers must also provide non-exempt employees with a 10-minute rest break for every 4 hours worked.

California Fair Employment and Housing Act

The California Fair Employment and Housing Act (FEHA) is California’s main law that protects employees from harassment and discrimination. The FEHA establishes “protected classes” of individuals, based on the following characteristics

• Race and color
• National origin and ancestry
• Religion and creed
• Age (over 40)
• Physical or mental disability, including HIV/AIDS
• Medical condition
• Genetic information
• Marital status
• Sex, gender, gender identity, and gender expression
• Sexual orientation
• Pregnancy and childbirth
• Military or veteran status

The FEHA also protects these employees from harassment or retaliation based on these characteristics.

Cal/OSHA

Cal/OSHA is responsible for ensuring workplace safety and health standards are followed throughout California. Cal/OSHA is part of the California Department of Industrial Relations and has the authority to investigate workplace safety complaints, conduct workplace inspections, and issue citations and penalties for violations of state safety regulations.

Independent contractors

For independent contractors, they are not entitled to wage and hour protections for minimum wage, etc. However, under California law, they are entitled to protections for:

• Breach of contract
• Anti-discrimination and harassment under the FEHA
• Privacy laws
• A right to a safe workplace under Cal/OSHA

What Are the Legal Options For California Delivery Service Industry Workers?

Despite a majority of workers in the delivery service industry being independent contractors, there are still several legal options available to them to protect their rights and seek remedies for any violations of state or federal labor laws. Here are a few of he

• Filing a lawsuit – The most straightforward legal option employees in California’s delivery service industry have when their rights are violated is to file a lawsuit. In an employment lawsuit, the following damages are generally recoverable:
  • Lost wages, including unpaid wages
  • Back pay
  • Liquidated damages
  • Pain and suffering
  • Emotional distress
  • Loss of dignity or enjoyment of life

How much you can recover ultimately depends on the facts and circumstances of your case. Additionally, employment law claims have a statute of limitations in California, which is the deadline in which you can file a claim. The statute of limitations depends on the claim, but ranges from two to four years from the date of the adverse employment action.

• Class action lawsuits – Workers who have been subject to similar labor law violations may join together in a class action lawsuit to seek collective remedies for the violations. This extends to independent contractors who believe that they are part of a larger group of workers who have been similarly affected. All of these workers may be able to join together in a collective action lawsuit or other legal action.
• Union representation – Delivery service industry workers may choose to join a union, which can provide them with collective bargaining power and additional legal protections. In October of 2022, gig workers from across multiple industries formed the California Gig Workers Union to combat low wages and unsafe conditions.

No matter what job you have in our state’s delivery service industry, it’s important to understand that you have a basic right to fair treatment and pay. Working with our team of experienced and dedicated California employment lawyers can ensure that you receive what you’re owed by your employer.