From PC Mag: DoorDash has agreed to pay $16.75 million to settle a tip-withholding case brought by the New York attorney general.
The settlement will be distributed among 63,000 delivery workers who received unfair pay under DoorDash’s guaranteed pay model that ran from May 2017 to September 2019.
Under the program, delivery workers (aka Dashers) could see the fixed amount they’d receive for each order before accepting it. However, once the delivery was complete and the customer tipped, DoorDash used the tip to “offset the base pay it had already guaranteed to workers, instead of giving workers the full tips they rightfully earned,” according to New York Attorney General Letitia James.
For example, if the guaranteed amount was $10, and the customer tipped an extra $3, DoorDash would take the tip and keep the Dasher’s pay at $10, using the extra money to reduce its own costs.
View: Full Article
