Grocery delivery company Instacart will pay $46.5 million to settle allegations by the city of San Diego that it misclassified its shoppers as independent contractors, City Attorney Mara Elliott announced.

More than 300,000 shoppers who worked for Instacart between September 2015 through December 2020 will be eligible for shares of a $37 million restitution allocation fund depending on how many hours they worked during that period. Instacart will also pay the city attorney $6 million in civil penalties, according to the settlement proposed in San Diego County Superior Court.