Doordash pays for drivers $ 17 million for stolen tips

Doordash drivers in New York are about to receive additional advice – and the one who is due to more than half a decade. As part of a An agreement announced by the Prosecutor General of the State of New YorkLetitia James, Doordash agreed to pay $ 16.75 million to more than $ 60,000 Dasters who had to get that money in the form of tips, but instead used it to cover the base pay and pocket the rest.

New York’s trial claims that between May 2017 and September 2019, tens of thousands of dassers were misled by the Doordash pay model. At that time, the company offered a guaranteed salary to drivers – the minimum amount they could expect to make from work. But instead of paying this guarantee and letting drivers retain their tips, Doordash counted the top to their basic pay and keep what remained.

Let’s say the driver is guaranteed $ 10 on delivery. Doordash would pay a minimum of 1 dollar of what, no matter what, but the rest will scathing on the basis of how the person who placed the order. If they left a $ 5 tip, DOORDASH counted this to a $ 10 guaranteed salary and covered the remaining $ 4 on top of a minimum of $ 1. If the tip was $ 7, Doordash just reduced your own payment to $ 2. Under this model, the only way the driver has ever seen more than $ 10 is if the customer is focusing higher than the guaranteed payment – which means if he tilts $ 11, that extra dollar above the $ 10 warranty will actually go to The driver, instead of subsidizing the DOORDASH country of payment.

This payment model will be skeevy, even if Doordash explains exactly how payments are distributed. But … it wasn’t. According to the AG DOORDASH’s lawsuit showed a message from customers saying that “Dasters will always receive 100 percent of the top” – a statement that is technically true but does not clarify that the “tip” is actually the salary of the delivery drivers S New York claims that revelations explaining how the tips in online documents worked and “Customers have no way of knowing that Doordash uses tips to reduce their own costs.”

Dordash eventually Change its payment model To ensure that “profit will increase with the exact amount that customer advice on each order”, but the case of New York represents drivers finally receive these tips that have won during the period when the company is less Transparent about who is really pockets that extra money.

Dashors, who is eligible for the settlement, will contact the settlement administrator so that they can receive their pieces of Paya, which is rightly theirs in the first place. Better late than never.