Food delivery services—like those delivering takeout via apps—are everywhere nowadays. But are the drivers who pick up your food and bring it to you really independent contractors, or are they employees under employment law?

The difference is important because it affects whether drivers get benefits, minimum wage, overtime, and other protections that employees usually receive. Below is a simple overview of how some people decide this question, why it matters, and what it means for drivers and businesses.

How Companies Classify Food Delivery Drivers

Most food delivery companies call their drivers independent contractors. They say drivers:

  • Provide their own vehicles
  • Choose when they want to work
  • Decide which deliveries to accept

Because of these points, the companies claim drivers aren’t truly employees. By labeling them as contractors, the companies avoid paying for things like health insurance, workers’ comp, or overtime. Meanwhile, drivers can potentially set flexible schedules and work for multiple apps at once.

But critics argue many drivers have little actual control over their tasks. They often must follow company rules about deliveries, accept certain orders, or meet strict performance standards. This can lead to confusion or legal battles over whether a worker is an employee or contractor.

Common Factors Deciding Employment Status

Government agencies, courts, or laws usually look at a few key points:

  • Degree of control: Does the company decide the driver’s schedule or how they do their job?
  • Opportunity for profit or loss: Do drivers face personal financial risk, like paying business expenses, or can they profit if they work smarter?
  • Integration: Is the driving role central to the company’s main business? (For instance, delivering food is obviously the core function of a food delivery service.)
  • Flexibility: Can drivers freely accept or reject deliveries without penalties?

No single factor controls everything. Instead, the entire situation is considered. If the driver has minimal independence and is tightly managed, a court might find them to be an employee rather than a contractor.

Why This Matters for Drivers

Being considered an independent contractor rather than an employee has various consequences for the worker. There are pros and cons to each classification, and there isn’t one that is objectively better for each person. Below are a few factors to consider.

Employees often get:

  • Minimum wage and overtime pay
  • Employer contributions to unemployment insurance or workers’ compensation
  • Potential health insurance, sick leave, or paid time off

Contractors usually:

  • Have more freedom over their schedule
  • Are not entitled to employee benefits
  • Handle their own taxes (including self-employment tax)
  • Bear their own business costs (fuel, vehicle upkeep)

If companies have been misclassifying drivers, the affected drivers might be owed back pay or other benefits. Some drivers have sued, saying they’re employees. Companies, on the other hand, typically defend the contractor label to save on labor expenses and maintain flexible work models.

Contact an Employment Lawyer for Help

If you’re a food delivery driver unsure about your rights or suspect you’ve been misclassified, an employment lawyer can evaluate your situation. They’ll review how your company directs your work, handles your pay, and sets policies to see if you fit the legal criteria of an employee rather than a contractor.

If misclassification is found, you could be owed back pay or certain benefits the company didn’t provide. Don’t wait to seek advice—your time to act may be limited. An attorney can guide you toward the best steps for safeguarding your financial and legal interests.