Doordash to pay the employees 16.8 million US dollars for their tips

In the early days of the explosion of the Food Delivery app, Doordash gave a new way to process tips that gave customers to workers: the money kept the money effectively for themselves.

The practice, which had been available for more than two years, finally led to an outcry. Doorash stopped it in 2019. But, as the workers' workers are called, that was still not the money that the company had held back to them.

Last week, the General Prosecutor's office in New York announced that Doordash dasher would pay 16.8 million US dollars to the reimbursement. The money is distributed to up to 63,000 employees, and although many receive in the low thousands of amounts, a few $ 14,000 receives, said a spokesman for the Attorney General Letitia James.

Last year Doordash agreed to similar settlements in Washington, DC, in 2020 and 11.25 million US dollars in Washington, DC, and $ 11.25 million in Illinois.

In this way, the old system worked: If Doordash guarantees an employee $ 7 for delivery and a customer did not type, Doordash would pay the worker the entire $ 7. For example, if the customer taps 3 US dollars, Doordash would only pay the employee $ 4 and add the 3 dollar tip so that the worker still only receives $ 7.

“Customers had no way to know that Doordash used tips to reduce their own costs,” said the General Prosecutor's office in a statement and added that the small print about where the tip was actually led was “buried in online documents”.

At the cash register, Doordash encouraged customers to tip, and reminded them: “That thers always get 100% of the tips.”

During the time when politics was in force, New Yorkers raised more than 11 million orders from Doordash, said the Attorney General. At that time, Doordash paid higher guarantees than some of the other delivery apps, which is why many still worked for the company despite this directive.

Things have changed a lot for Dasher's in New York City since 2019. At that time there was no minimum wage for delivery offers. There has been one since 2023 and it is currently 19.56 US dollars – plus tips – spent per hour to create deliveries. (The hourly wage does not cover the time that I have been waiting for orders.)

Los delivers Unidos, a work adjustment group that fought for the fairer content for accompanying workers, welcomed the agreement. “Today tastes like victory,” said Ligia Guallpa, the executive director of the group.

In an explanation on Monday, Doordash said: “We are pleased to have solved this year and look forward to continuing to offer millions of people a flexible way to achieve their financial goals.”

When asked whether the company wanted to carry out the reimbursement in other states in other states, a spokesman replied: “Today we only concentrate on solving this examination and extinguishing the allegations of this behavior years ago.”

A state administrator contacts current and former dasher, who may be entitled to reimbursement to help you claim this.

The dasher will receive part of the amount that was not properly held back to you, but it is not yet clear how big a part, said the office of the Attorney General.

Blake Volkan, who was at the end of 2010, said on Monday that he thought that the company probably overtook thousands of dollars tips from him and he was looking forward to payment.

“I hope the boys who have worked hard get what they earn,” said Volkan through text.