The ever-present meals supply app DoorDash pays nearly $17 million to settle claims that it unfairly used buyer tricks to subsidize the wages of its supply staff in New York, moderately than letting drivers hold the tips about high of their assured pay, Legal professional Common Letitia James stated Monday.
James stated DoorDash used the wage mannequin between Could 2017 and September 2019. The corporate would assure staff a base cost for every supply however was factoring suggestions into that equation, solely paying staff for regardless of the suggestions didn’t cowl, in keeping with the legal professional common.
DoorDash additionally didn’t make it clear to clients that their suggestions have been getting used to offset employee wages, stated James, a Democrat.
“This is just fundamentally unfair,” she stated at a information convention in Manhattan. ”Clients had no motive to imagine that the following pointers have been being utilized by DoorDash to cut back its prices.”
The corporate pays $16.75 million in restitution that will likely be distributed to DoorDash staff who made deliveries between Could 2017 and September 2019 in New York. Eligible staff will likely be contacted by a settlement administrator.
In a press release, DoorDash stated, “While we believe that our practices properly represented how Dashers were paid during this period, we are pleased to have resolved this years-old matter and look forward to continuing to offer a flexible way for millions of people to reach their financial goals.”
The corporate stated the outdated pay mannequin is not in use.
