New York (AP) – Ubiquitous Food Delivery App Doordash settles claims that drivers have unfairly used customer tips to subsidize wages for New York delivery workers rather than letting drivers retain hints above their guaranteed pay Paying almost $17 million for the Attorney General Leticia James I said on Monday.
James used the wage model between May 2017 and September 2019, according to Doordash. The company guarantees workers basic payments for each delivery, but they took the hints into the equation. .
Doordash also didn’t make it clear to clients that their tips were being used to offset workers’ wages, Democrat James said.
“This is fundamentally unfair,” she said at a press conference in Manhattan. “Customers had no reason to believe these tips were being used by Doordash to reduce costs.”
AP’s Lisa Dwyer reports on a new settlement on the misused hints by Doordash.
The company will pay $16.75 million in reparations distributed to Doordash workers who delivered in New York between May 2017 and September 2019. Eligible workers will be contacted by the settlement manager.
In a statement, Doordash said: “We believe our practices are aptly representative of how dashes were paid during this period, but we can solve the problems this year and provide flexible ways to millions of people. We look forward to continuing to offer them. We will reach their financial goals.”
The company said the old wage model is no longer in use.
