California Grubhub Drivers: Don’t Miss This $24.75 Million Settlement

If you drove for GrubHub in California, pay attention, because you may have money waiting for you. GrubHub just agreed to a $24.75 million class action settlement involving claims that the company misclassified drivers as independent contractors when they should have been employees. According to the lawsuit, drivers claim they weren't properly reimbursed for expenses like gas, mileage, vehicle wear and tear, and phone usage, and they may have missed out on protections like minimum wage and overtime pay. This case has actually been going on for years, all the way back to 2015, and it covers California drivers who completed deliveries between December 2014 and March 2026. GrubHub denied wrongdoing and agreed to settle the case. But here's why this matters. A lot of workers hear the words "independent contractor" and assume that means they automatically don't have employee rights. That's not always true. In California especially, courts look at the reality of the job, not just the title in the contract. So if a company controls how the work is done, heavily manages the workers, or the workers are central to the business itself, there can be serious legal questions about whether those workers were properly classified. And when workers are misclassified, they can potentially miss out on minimum wage, overtime, meal and rest breaks, expense reimbursement, workers' comp protections and other labor rights. This isn't just a gig app issue. We see misclassification claims in all kinds of industries: construction, salon, healthcare, delivery services, sales jobs, creative industries, and even office jobs. Some companies call workers contractors because it saves the company money — but legally, the label alone doesn't decide your rights. For this settlement specifically, eligible GrubHub drivers may be able to file claims for compensation, and payments are expected to be based partly on the amount of miles driven. This is important: the deadline to file a claim is currently June 18th, 2026. So if you work in the gig economy — or honestly, any job where you've been labeled an independent contractor — it's super important that you understand your rights. Follow for more employment law news, workplace tips and updates employees should actually know about.