Raef Lawson v. Grubhub, Inc.

Grubhub Driver Classification Case

Raef Lawson sued Grubhub, claiming the company improperly classified delivery drivers as independent contractors instead of employees. He alleged this classification allowed Grubhub to avoid paying minimum wage, overtime, and reimbursing work expenses.

The Ninth Circuit Court of Appeals partially sided with Lawson. The court said the case should go back to the lower court to reconsider whether drivers should be classified as employees under California's newer ABC test—a three-part standard for determining worker status. However, the court blocked the case from proceeding as a class action lawsuit, meaning other drivers couldn't automatically join Lawson's claim.

This ruling matters for gig workers because it kept the door open for misclassification challenges. The ABC test typically favors workers by making it harder for companies to claim they're not employers. However, the blocked class action limits how many workers can collectively pursue similar claims, forcing individual workers to file separate lawsuits instead of joining together for more leverage.