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Delivery app claimed that 100% of tips went to ‘dashers’ but instead used them to subsidize workers’ base salaryThe delivery platform DoorDash is paying $16.75m to settle an investigation conducted by New York authorities that charged the company with using tips from customers to subsidize workers’ base pay.Between May 2017 and September 2019, DoorDash used a guaranteed pay model to show delivery workers how much they would make before accepting a delivery. The investigation by the New York attorney general, Letitia James, found that under this model DoorDash used tips from customers to offset the base pay it guaranteed to workers rather than giving them the full tips. Continue reading…
Delivery app claimed that 100% of tips went to ‘dashers’ but instead used them to subsidize workers’ base salary
The delivery platform DoorDash is paying $16.75m to settle an investigation conducted by New York authorities that charged the company with using tips from customers to subsidize workers’ base pay.
Between May 2017 and September 2019, DoorDash used a guaranteed pay model to show delivery workers how much they would make before accepting a delivery. The investigation by the New York attorney general, Letitia James, found that under this model DoorDash used tips from customers to offset the base pay it guaranteed to workers rather than giving them the full tips.