The Federal Trade Commission is distributing more than $23.8 million to 640,038 Grubhub drivers and diners following allegations that the food delivery company misled workers about earnings and engaged in other deceptive practices. Most recipients will receive checks by mail, while some payments will be sent through PayPal.
The payments stem from a December 2024 case brought by the FTC and Illinois attorney general against Grubhub. Regulators accused the company of misleading drivers about how much they could earn, blocking some diners from accessing their accounts and funds, and listing restaurants without their permission.
According to the FTC’s official payment announcement, recipients who receive checks have 90 days to cash them, while PayPal recipients have 30 days to accept their payments. The FTC said consumers do not need to pay fees or provide account information to receive the money.
Settlement Required Changes to Grubhub’s Practices
One part of the complaint concerned driver pay. Regulators alleged that Grubhub advertised hourly earnings that most drivers were unlikely to achieve, including claims that drivers could earn as much as $40 per hour.
The complaint also alleged that Grubhub listed as many as 325,000 unaffiliated restaurants on its platform. Regulators said some restaurants remained listed even after asking to be removed, with Grubhub allegedly using the listings to make its service appear to offer more restaurants.
Under the settlement, Grubhub must accurately advertise potential driver earnings, provide customers with a process for challenging account restrictions, and obtain restaurants’ permission before listing them on the platform.
Separate California Driver Settlement Receives Approval
The FTC payments arrive shortly after a federal judge approved a separate $24.7 million settlement involving approximately 60,000 Grubhub drivers in California. That case centered on allegations that drivers had been incorrectly classified as independent contractors and denied minimum wages and expense reimbursements.
The California settlement covers people who accepted or completed at least one Grubhub delivery in the state between December 3, 2014, and March 13, 2026. The litigation began in 2015 and continued for more than a decade before receiving final approval in July.
Grubhub is not the only food delivery platform to have faced regulatory and legal scrutiny over worker compensation, fees, and restaurant listings. DoorDash and Uber Eats have also faced cases concerning their relationships with drivers, customers, and restaurants.
Featured image credits: Wikimedia Commons
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