SAN FRANCISCO (BCN) — San Francisco has secured a settlement of more than $5 million with the grocery delivery company Instacart over its health care and paid sick leave policies, benefiting over 5,000 workers.

City Attorney David Chiu and San Francisco Office of Labor Standards Enforcement (OLSE) director Patrick Mulligan announced Thursday that the city secured the $5.25 million settlement after an investigation into the company’s compliance with San Francisco labor laws.

This is the second-largest settlement benefitting workers in OLSE’s 20-year history, according to the city attorney’s office.

After reports of tech companies misclassifying workers, OLSE initiated an investigation into Instacart’s compliance with the city’s health care and paid sick leave ordinances.

“We remain committed to continuing to serve customers across San Francisco while also protecting access to the flexible earning opportunities Instacart shoppers consistently say they want,” Instacart said in a statement about the settlement.

“We hope this sends a strong message that the city aggressively investigates compliance with our labor laws and works hard to ensure workers are treated fairly,” Chiu said.

“These Instacart workers made deliveries and performed this work even during the height of the pandemic, and now they will receive the benefits they are owed,” Mulligan said.

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About $5.1 million of the settlement will go directly to Instacart workers who made deliveries and provided services in San Francisco between 2017 and 2020. The rest will cover OLSE’s enforcement costs.

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