Shipt to Pay $800,000 Settlement, Continue Classifying Workers as Contractors

Minnesota Attorney General Keith Ellison announced that a same-day delivery service owned by Target agreed to pay $800,000 and implement new policies to continue classifying its workers as contractors. The state sued Shipt in 2022, alleging that it gained an unfair competitive advantage by misclassifying employees as independent contractors. In addition to depriving workers of minimum wage and sick time, the state claimed that the misclassification also precluded them from receiving unemployment or workers' compensation benefits they would have been entitled to as employees. Under the se...