Millions that are to be paid to drivers for tips for bags

The New York general prosecutor's office announced a Doordash processing of almost 17 million US dollars after the delivery platform used tips that the drivers used to subsidize their salary.

On February 24, the New York Attorney General Letitia James said in a press release that an office of the investigation by the General Prosecutor (OAG) between May 2017 and September 2019 guaranteed the workers, instead of giving the workers the full tips that they can Have deserved quite. “

AG James said that customers were misleading to think that their tips would be given directly to delivery offers, also known as Dasher. Instead, Doordash would keep the tips and remove them from the guaranteed salary.

Doordash again pays 16.75 million US dollars to Dasher and up to $ 1 million in comparison management costs to meet payments.

What did Doordash say?

In an explanation to Today.com, a Doordash spokesman says that it is still obliged to ensure that the profit from Dasher's is “fair and transparent” and that the company has not used the same salary model since 2019.

“We are still obliged to ensure that the income is always fair and transparent, and the enclosed allegations were summarized with an old wage model that was retired in 2019. . “”

The spokesman added: “While we believe that our practices were properly presented during this time.”

According to Doordash, it has made significant changes to its salary model since the years treated in the study and that DAHHERS hold 100% of their tips from orders in the app.

What did the investigation find?

According to the settlement, the OAG examination showed that employees could only see their tips as part of the older salary model if the amount was greater than what Doordash had guaranteed to pay for the order.

While the delivery company would pay the Diesher at least 1 US dollar, the investigation showed that the tips paid by the customer were not always given to that.

If, for example, orders with a guaranteed profit of 10 US dollars from Doordash have a guaranteed income of USD 10, the DASHER always receives 10 US dollars.

Only when a customer entered the guaranteed income would Doordash give him additional money.

Example:

• If a customer taps 9 US dollars, Doordash would pay 1 $ ($ 1 + $ 0 rest). The dasher still received only 10 US dollars.
• If the customer tilts 11 US dollars, Doordash would pay $ 1 ($ 1 + $ 0 rest). The dasher received only 12 US dollars.

The AG said that the company did not disclose this information while the message “always receives 100 percent of the tip” at the cash register.

“Customers had no way to know that Doordash used tips to reduce their own costs,” said James.

Who has compensation?

That, which was delivered for Doorash between May 2017 and September 2019 in the state of New York, may be entitled to this agreement.

The investigation showed that around 63,000 New York deliverers were affected.

Appropriate drivers are contacted by the billing administrator by e -mail, e -mail and/or text with communications about the billing and information to submit a claim. Payments are expected to begin in early 2025.

James said an administrator would set up a website for claims.

What happens next?

Doordash has to revise his payment practices, improve transparency in terms of your salary guideline details and improve access to the DASH history, the press release says.

Andrew Wolf, assistant professor at the School of Industrial & Labor Relations from Cornell University, which is studying the GIG economy, said that although the judgment is good for GIG workers, similar violations may continue to take place.

“The Nyags settlement today with Doordash is the most recent example of how GIG companies are not transparent about how their algorithms lead to wage theft and unpredictability and shift all burdens on employees,” said Wolf in a statement in one Explanation shared with Today.com. “The apps refused to explain to the employees how wages are determined and the apps constantly experiments and one -sided changes in the way their algorithms work, causes extreme problems for this workforce with low wages.”

He adds that the AG settlement has resolved this “special incident without legislative measures to regulate algorithmic wage provisions, this incidents of wage theft will remain and that employees will continue to suffer.”