Tippoint: Doordash undertakes to pay non -paid tips to NY's accompanying persons in the settlement with AG James

Leticia James presented a massive Doordash settlement on Monday, which is due to what the Attorney General described as stolen wages.

Photo by Dean Moses

Attorney General Letitia James revealed a massive Doordash settlement on Monday, which resulted from a suspected tip program that led to wages of delivery clients.

According to James, the Food Delivery Company led customers to the meinry by introducing tips for the delivery members in the city, and adding these funds to the basic wage that should already have been guaranteed to the worker. Between May 2017 and September 2019, Doordash used a guaranteed salary model that could see how much they would be paid for before taking a delivery. A general investigation of lawyers showed that Doordash used customers to compensate for the basic payment that they had already promised to the employees instead of giving them the full tips they deserve.

For example, if a customer was typing 0 US dollars, Doordash pays 10 US dollars ($ 1 + $ 9 rest). The dasher received 10 US dollars. However, if a customer taps 3 US dollars, Doordash pays 7 US dollars ($ 1 + $ 6 remaining). The dasher still received only 10 US dollars and nothing additional.

“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. “Doorash misled customers who generously typed and deceived the dasher who deserved to be paid in full. This settlement returns millions into the pockets diligently and ensures transparency in the future payment practices from Doordash. My office continues to protect New York workers from deceptive business practices and ensures that they receive all the money they have earned. “

According to James, Doordash has agreed to pay $ 16.75 million to Dasher, who were delivered to the company between May 2017 and September 2019. In addition, Doordash will be obliged to ensure that all tips in its entirety are paid to Dasher.

“16.75 million US dollars are a valuable lesson. In addition, we will issue conformity reports to our office every six months every six months every six months. In addition, they are both passed on to the payment details, the workers, the workers and also to break down their salary, ”said James.

Ligia Guallpa, co-founder of Los, delivered Unidos, an organization that is committed to app-based delivery workers, explains that this is a great victory for a mainly immigrant employee base, but also steal the length from her workers in need of protection.

“This settlement shows the size in which Doordash steals from its workers and the scale in which it is located,” said Guallpa. “Today New York City sees what we are trying to do and how much more work is to do to defend itself against the predatory work practices on which this industry is built up.”

James' office reports that around 63,000 New York suppliers benefit from this agreement. Payments are expected to begin in early 2025.

Doordash reacted by underlining that the company did not use this salary model in over half a decade and that they are looking forward to continuing to work with its dacher.

“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. “Said a Doordash spokesman. “While we believe that our practices are correctly represented during this time, how dasher's paid, we are happy to have solved this year's matter and look forward to continuing to offer millions of people a flexible opportunity to offer their financial goals to reach.”