ST. PAUL, Minn. – Minnesota Attorney General Keith Ellison is suing Shipt, claiming Target’s grocery delivery businesses misclassified its workers as independent contractors to avoid paying benefits and payroll taxes.
Ellison said Shipt claims its “shoppers” are independent contractors who run their own businesses, but Shipt controls nearly every facet of their work and doesn’t allow them to create independent businesses outside of its proprietary mobile app. He said workers have no clarity on how much they will be paid and often don’t receive minimum wage and overtime they’re entitled to.
Shipt, in a statement said, “Shoppers with Shipt are independent contractors, and the flexibility that comes with being an independent contractor is the primary reason Shipt Shoppers choose to earn on our platform.”