AG Ellison reaches settlement with Shipt over allegations of misclassification
Published Date: Sep 26, 2025
- Categories
- Lead States
- Action Type Settlement
Minnesota Attorney General Keith Ellison announced today that his office has reached a settlement with Shipt, Inc. to resolve the Attorney General’s 2022 lawsuit alleging that Shipt misclassified workers—known as “Shoppers”—as independent contractors instead of as employees. As part of the settlement, Shipt will pay $800,000 to the State of Minnesota and must improve working conditions for Shoppers in numerous key ways. The terms of the settlement were crafted based on input from Shoppers themselves about the most common difficulties they face on the job.
“I took on Shipt to improve conditions for their workers, and that’s what we accomplished with this settlement. Just as we based our lawsuit on complaints from Shoppers themselves, we’ve based this settlement on feedback from Shoppers that will create a more just and fairer work environment for them,” said Attorney General Ellison. “I am pleased that at the end of this lengthy litigation, we were able to secure better working conditions for Shoppers going forward. My team and I will continue to investigate complaints of employer misclassification and fight for the rights and dignity of working people everywhere. I look forward to using what my team and I learned from this lawsuit to support legislation making it easier to hold employers accountable for misclassifying their workers.”