Doordash pays 16.8 million US dollars to New York clerk after having misused their tips

Doordash pays reimbursement after keeping tips from up to 63,000 of his New York delivery offers thanks to an agreement with the New York general prosecutor's office. The New York Times Reports. The Attorney General Letitia James announced on Monday that Doordash will pay 16.8 million US dollars, which is distributed to employees who were exposed to the company's “guaranteed PAY” model that subsidized payments against customer tips.

Doordash also pays up to 1 million US dollars of administrator costs to enable payments. Some workers are expected to receive several thousand dollars, others up to 14,000 US The New York Times. The General Prosecutor's office determines which employees are justified and how much they are repaid. In November, Doordash also made similar settlements with Illinois for 11.3 million US dollars and with Washington DC for $ 2.5 million in 2020.

From May 2017 to September 2019, DOORASH's payment model would “guarantee” a certain payment to the employees, whether customers typed or not. However, what the company did not make clear was that there was really a basic wage of 1 US dollar and would be used by customers before spending money on the guaranteed amount. For example, if a delivery order had guaranteed a guaranteed payment of 10 US dollars to the employee and the customer, Doordash would pay the employee's 1 US dollar plus the tip of $ 6, and fill in the remaining 3 US dollars to sum up the guarantee. If you tilted 7 or 8 US dollars, nothing would be paid for the worker – Doorash would instead immerse the difference.

Doorash's model to use tips for the basic wage of employees, was to be light in July 2019 and was examined by the workers and customers for the exam, which the company urged to promise changes in the guideline. In an answer in August 2019, the situation tweeted Doorash -CEO Tony Xu that they thought that they would “do the right thing for that by doing it by doing it completely if a customer has not left a tip, but the feedback we recently received made it clear that some of our customers who left tips like their tips did not matter.”

The guaranteed salary system was not only fraudulent for employees who claimed government complaint, but it was also misleading for customers, since the app promised that “that always received 100 percent of the tip”, which is only technically. The General Prosecutor's office in New York also found that the disclosure of the work of the tips during the ordering process was buried until inaccessibility.

During the 2021 pandemic, Doordash and Grubhub also sued the city of Chicago for unfair fees and tips of tips. The case continues.