Doordash to pay millions of workers stolen tips, says New York Attorney General

Delivery workers such as William Medina, who have moved to New York since the move of Doordash in 2019, often risk life and link while navigating through the city's streets. Although the 2024 representatives are now entitled to earn a livelihood, the employees have claimed that Doordash has found ways to systematically absorb their wages.

According to an investigation by the New York General Prosecutor Letitia James, her claims were confirmed.

Yesterday James announced a settlement of 16.75 million US dollars with Doorash to lead both consumers and suppliers about how tips were distributed.

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Between 2017 and 2019 Doorash used a guaranteed salary model with which the employees can see how much they are paid for before accepting delivery. According to James, however, Doordash actively deceived the delivery workers by using customers tips to compensate for the guaranteed payment instead of giving the employees complete tips in addition to the value of the delivery.

For example, if Doordash guarantees a worker of 10 US dollars for a certain delivery and a customer typed 3 US dollars, Doordash only paid the employee to 10 US dollars, whereby the company used the tip to fulfill the guaranteed wages.

According to the provisions of the comparison, Doordash will be forced to pay the delivery agent and up to $ 1 million in comparison management costs in order to distribute payments.

“Department members are an integral part of our communities and work tirelessly to bring food and other important essentials directly under all conditions right on our doorstep,” said James in an explanation. “Doorash misleaded customers who taped and deceived the dasher who had deserved to be fully paid for.”

Doordash also misleaded customers who were assumed that the tip would flow directly into the workers' pockets. At the cash register, customers were encouraged to type with a message in which “Dashers always get 100 percent of the tip”.

However, the workers could only see their tips if they were larger than the amount that Doordash had already paid for the order. Doordash always pays an employee at least 1 US dollar and would use the tips paid by the customer to compensate for the rest of the amount guaranteed to the delivery worker.

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“Greed, that's what this is about,” said Medina in an explanation. “A company that builds on greed that has to steal tips from employees – and customers – to achieve income and make its investors happy is unfair. It is unfair to workers who risk their lives every day to do this work. “

In addition to the reimbursement fund, Doordash has to revise its payment practices. The company must maintain a wage model that ensures that consumer tips are paid directly to the employees. You also have to clearly pass on the details of the salary guidelines to both employees and customers and share the basic wage, advertising premiums and tips with employees for each delivery.

“This settlement shows the size in which Doordash steals from its workers and on what standard it is” 65,000 app-based deliverers in a statement. “And if you steal and lie on this size, it is systemic, it is integrated into your business model. And a business model where you have to steal employees and customers is a failure. “

Read too: Unsure at every speed: The deaths for delivery workers are on the rise in 2024

The reimbursement restoration of 16.75 million US dollars secured by Doordash are distributed directly to employees by a comparison manager who does not yet have to be determined. Every employee who delivered for Doordash between May 2017 and September 2019 can result in an action for claims. Around 65,000 New York delivery offers benefit for Doordash during this time.

Appointed employee will contact the billing administrator by e -mail, e -mail and/or text with communications about the billing and information to submit a claim. For more information, please contact the General Prosecutor's office in New York under number 1-800-771-775.