Doordash to pay NY suppliers 17 million US dollars for using their tips

The US delivery service Doorash will give drivers of the New York state almost 17 million US dollars who accused society of cheating them out of the tip by applying for them to their basic salary, the officials said on Monday.

According to the office of the New York General Prosecutor Letitia James, around 63,000 reliability workers benefit from the $ 16.8 million unification.

Doordash formerly “used customers tips to compensate for the basic wage that the workers had already guaranteed instead of giving the workers the full tips that they rightly deserved,” said James's Office.

The settlement applies to suppliers who worked in the state of New York between May 2017 and September 2019 when the system was present.

Before each trip, drivers, known as “Dasher”, would be the guaranteed basic payment that they would receive for a specific delivery before accepting them.

If the customer gave the driver a tip, he would be applied to the amount that the driver had guaranteed from the company, and not about this sum.

For example, if Doordash would be guaranteed that a driver would receive 10 US dollars, but which received a tip of 4 US dollars, the delivery person received 10 US dollars instead of 14 US dollars, whereby the company only 6 US dollars pays.

The system was used, although customers were communicated to the cash register that “Dashers always received 100 percent of the tip,” said James's Office and added that the disclosures via the payment system became either online or inaccessible.

“Doorash misled customers who generously typed and deceived the dasher who deserved to be paid for,” said James.

According to her office, more than 11 million delivery orders with Doordash in New York were given up during the period.

Last November, the company stated that after similar legal steps, more than 11 million dollars for delivery drivers in the state of Midwest Illinois to be paid.

In a statement cited by the New York Times, Doordash said that it was “pleased to have solved this year's affair” and was looking forward to “continuing to offer millions of people a flexible way to achieve their financial goals”.