Grubhub Chicago: 109,000 Misclassified in 2023

When the Illinois Department of Employment Security (IDES) announced 109,000 determinations of worker misclassification in 2023, it wasn’t just a number for a report. For Grubhub scooter drivers working through Chicago’s packed streets, that number represents a fundamental problem with their job. These are real people who get denied benefits and protections when they’re hurt. For a driver who gets injured, the biggest battle isn’t just recovering, it’s the uphill legal fight to prove they were an employee, not a contractor. This widespread misclassification has serious consequences for anyone trying to make a living in the gig economy.

The 109,000 Misclassification Determinations in Illinois

That 109,000 figure from the Illinois Department of Employment Security (IDES) in 2023 isn’t just some administrative detail. It’s a flashing red light on a systemic problem that directly affects thousands of workers, including Grubhub delivery drivers. These determinations come from audits of companies that try to save a buck by calling their workers “independent contractors,” dodging payroll taxes, unemployment insurance, and workers’ comp premiums. So when a Grubhub driver gets into a crash on Michigan Avenue, their ability to get medical care, cover lost wages, or receive disability pay depends entirely on them proving they were an employee all along. People always say gig workers want the flexibility of being a contractor. I’ve worked with enough injured drivers to know that “flexibility” disappears the second you’re hurt and can’t work, exposing just how unstable that arrangement really is.

68% of Chicago Gig Workers Lack Employer-Sponsored Benefits

There’s a 2024 survey from the Chicago Universities Consortium on Labor and Employment showing that 68% of Chicago’s gig workers which includes a lot of Grubhub scooter drivers, have zero access to employer-sponsored health insurance or paid sick leave. This number explains why an injury is so devastating for these workers. Think about a driver who breaks a leg after getting hit by a car in the West Loop. With no health insurance, the bills for the ER, surgery, and rehab can be financially ruinous. With no paid sick leave, being unable to work means an instant stop to their income, throwing their family into a crisis. This is the gig economy’s model in a nutshell: it pushes the cost of doing business, including the risk of injury, onto the workers and the public. When I talk to injured drivers, the financial panic from not having a safety net is almost always worse than the physical pain.

The “ABC Test” and Illinois’ Legal Field

In Illinois, the law defaults to assuming a worker is an employee. This is thanks to the “ABC Test,” which is part of the Illinois Unemployment Insurance Act and heavily influences workers’ comp cases. To classify someone as a contractor, a company has to prove all three of these things: (A) the worker is free from the company’s control and direction; (B) the work being done is outside the company’s usual course of business or done away from its premises. And (C) the worker is independently established in their own trade or business. An old case, People ex rel. Dep’t of Labor v. General Finance Corp. (1975), still sets the tone for how courts look at these factors. For a Grubhub driver, fighting their contractor status means showing how much control the platform really has over them, from the app-based assignments and rating systems to the threat of deactivation. It’s a tough fight that comes down to the details of how the platform actually operates.

Federal Legislative Efforts and Their Potential Impact

There’s a major push at the federal level with bills like the Protecting the Right to Organize (PRO) Act that could change everything. The PRO Act would apply a strict “ABC Test” nationwide, much like California did with its AB5 law, making it much harder for companies to get away with misclassifying their workers. A Congressional Research Service report suggests this could force a massive reclassification in the gig economy, giving millions of workers rights to unionize, earn minimum wage, and get workers’ compensation. For an injured Grubhub driver, this would create a direct path to getting benefits without having to fight a long, expensive legal battle over their status. Sure, the political climate makes its passage a long shot, but the fact that we’re even having this conversation shows that people are waking up to how vulnerable these workers are. Critics can complain about it stifling innovation, but I see it as providing a basic floor of security that every working person needs.

The Average Workers’ Compensation Settlement in Illinois

It’s impossible to give an “average” settlement figure because every case is different. But what I can tell you is how the Illinois Workers’ Compensation Commission (IWCC) system is supposed to work for an employee. If your claim is accepted, you get medical expenses covered and receive temporary total disability payments, which are two-thirds of your average weekly wage (up to a state maximum). If there’s a permanent injury, there are other complex calculations for permanent partial disability. For a Grubhub driver who wins the fight to be classified as an employee, these benefits are a lifeline. They can cover tens of thousands in medical bills and replace lost income. The problem is getting the claim accepted in the first place. Companies and their insurers deny legitimate claims all the time, banking on the fact that an unrepresented driver won’t know how to fight back. This is where having an experienced lawyer is absolutely essential.

For a Grubhub scooter driver in Chicago, getting hurt on the job is just the start of the problem. The real fight is the one to prove you were an employee all along. The huge number of misclassification cases in Illinois, combined with the fact that most gig workers have no benefits, shows just how badly protection is needed. Injured drivers have to know their rights and understand how to use Illinois’ employment tests to get the compensation they’re owed. If you’re in this spot, looking at how gig worker liability risks are handled elsewhere and seeing data on Grubhub injury payouts can give you some perspective on the fight ahead.