Class Action Settlements for Gig Workers and Delivery Drivers
Delivery drivers, rideshare drivers and app-based workers have recovered money over withheld tips, pay practices and misclassification. Arbitration clauses shape how most of these cases play out.
Gig workers and delivery drivers do receive class action settlements and government refunds, usually over withheld or misdirected tips, pay that didn't match what the app promised, unreimbursed expenses, and whether workers were misclassified as independent contractors. Because most gig platforms require arbitration, a lot of this money comes through government actions and mass arbitration rather than traditional class actions.
What gig worker cases are about
- ✓Tips. Platforms accused of using customer tips to cover part of a driver's guaranteed pay instead of passing them on in full.
- ✓Misclassification. Claims that workers should have been employees, with minimum wage, overtime and expense reimbursement. See how wage and hour settlements work.
- ✓Pay transparency. Advertised earnings that didn't match what drivers actually made.
- ✓Licensing and regulation. Cases against cities or agencies over license suspensions or fees imposed on drivers.
- ✓Background checks. Fair Credit Reporting Act cases over how background check reports were obtained or used to deactivate drivers.
Open settlements and refunds for drivers right now
Grubhub Refunds
The FTC is sending 640,038 payments totaling more than $23.8 million to Grubhub drivers and diners harmed by the food delivery platform’s deceptive claims or misleading and unlawful conduct.
$140M NYC TLC License Suspension Class Action Settlement
NYC Taxi and Limousine Commission Class Action Settlement
If you were a taxi or for-hire vehicle driver whose license was suspended by the NYC Taxi and Limousine Commission based on having been arrested on a criminal charge between June 28, 2003 and February 18, 2020, you may be included in this settlement.
Refunds for Amazon Flex Drivers
The FTC is sending Zelle payments to eligible Amazon Flex drivers who had their tips withheld by Amazon between 2016 and 2019.
Updated daily from the SettleScout catalogue. See every open settlement.
Why arbitration matters so much here
Most gig platform agreements require disputes to go to individual arbitration and waive class actions. That means many workers can't join a class action against the platform. Instead, money tends to reach workers in three ways: refunds from the FTC or a state attorney general, mass arbitration where thousands of workers file individual claims at once, or class actions in states or situations where the arbitration clause didn't apply.
When the FTC or a state attorney general returns money to drivers, it typically uses the platform's payment records and sends payments directly or asks you to confirm details on an official refund site. Check the agency's own website before trusting any message. See how FTC refunds work.
Records every gig worker should keep
- 1Weekly or monthly earnings statements from each app, downloaded regularly.
- 2Screenshots of advertised pay offers and guaranteed earnings promotions.
- 3Mileage logs, which matter for expense reimbursement and taxes alike.
- 4Your 1099 forms for each year you drove.
- 5Any deactivation notices and background check reports you received.
Apps can change how far back earnings history goes, and you lose access when you stop driving or your account is deactivated. Downloading your records every few months is the simplest protection.
Taxes on wage-related payments
Money that replaces wages or tips is usually taxable, and some settlements split payments into wage and non-wage portions with different tax forms. Our guide to settlement taxes explains the general rules; a tax professional can tell you how it applies to you.
Workers are often consumers too
Drivers frequently qualify for consumer settlements as well, such as data breaches at the platforms they work for, auto insurance total-loss cases, and vehicle defect settlements. Check both sides.
Mass arbitration explained briefly
When a platform's contract requires individual arbitration, workers sometimes respond by filing thousands of individual arbitration claims at once. Each claim triggers fees the company usually has to pay, which can push it toward a group settlement. If you sign up with a firm organizing a mass arbitration, you're a client with an individual claim, not a class member, so read the engagement agreement carefully. Our glossary entry on mass arbitration covers the basics.
Protecting yourself as a driver
- ✓Keep copies of the terms of service you agreed to, with the date. Platforms change them often.
- ✓Record the pay offers you accept in a simple spreadsheet or notes app.
- ✓If you're deactivated, request your data and any background check report used in the decision.
- ✓Be wary of anyone charging upfront fees to recover tips or wages for you.
If you're unsure whether you were misclassified or underpaid, your state labor department can explain the rules where you work, and an employment lawyer can review your situation, often with a free consultation.
Taxi and for-hire drivers in cities with licensing agencies have their own category of cases, often against the city itself over fees, suspensions or regulations. Notices for these cases are often sent through the licensing agency itself, so keep your contact details current there. These typically cover only drivers licensed in that city during a specific period, and they can pay meaningful amounts per driver.
Add the platforms you've driven or delivered for to SettleScout, along with your car and insurer. The app will flag new settlements and refund programs that name them and remind you before deadlines.
Frequently Asked Questions
Can gig workers join a class action against the app they work for?
Sometimes, but many platform agreements require individual arbitration and waive class actions. Whether that clause applies depends on the agreement, the state and the claim.
Will the platform retaliate if I file a settlement claim?
Many laws protect employees from retaliation for wage claims, but protections for independent contractors vary by state and by claim. If you think you were deactivated for filing, talk to a lawyer or your state labor agency.
Are delivery driver tip refunds taxable?
Tips are generally taxable income, so refunded tips usually are too. The refund program or settlement will explain which tax form, if any, it issues.
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