DoorDash Paying Drivers $17 Million For Stolen Tips (gizmodo.com) 52
An anonymous reader quotes a report from Gizmodo: As part of a settlement announced by the state of New York's Attorney General, Letitia James, DoorDash has agreed to pay $16.75 million to more than 60,000 Dashers who were supposed to receive that money in the form of tips but instead, the company used it to cover base pay and pocketed the rest. New York's lawsuit alleged that between May 2017 and September 2019, tens of thousands of Dashers were misled by DoorDash's pay model. At the time, the company offered a guaranteed wage to drivers -- the minimum amount that they could expect to make from a job. But instead of paying that guarantee and letting drivers keep their tips, DoorDash counted the tip toward their base pay and kept what was left. [...]
Per the AG's lawsuit, DoorDash showed a message to customers that said "Dashers will always receive 100 percent of the tip" -- a statement that is technically true but does not clarify that "tip" is actually the delivery drivers' wage. New York argued that disclosures explaining how tips worked were buried in online documents and "customers had no way of knowing that DoorDash was using tips to reduce its own costs." DoorDash did eventually change its payment model to ensure "earnings will increase by the exact amount a customer tips on every order," but New York's case represents drivers finally getting those tips they earned during the period when the company was less transparent about who was actually pocketing that extra cash. Dashers eligible for the settlement will be contacted by the settlement administrator so they can get their piece of the pie that was rightfully theirs in the first place.
Per the AG's lawsuit, DoorDash showed a message to customers that said "Dashers will always receive 100 percent of the tip" -- a statement that is technically true but does not clarify that "tip" is actually the delivery drivers' wage. New York argued that disclosures explaining how tips worked were buried in online documents and "customers had no way of knowing that DoorDash was using tips to reduce its own costs." DoorDash did eventually change its payment model to ensure "earnings will increase by the exact amount a customer tips on every order," but New York's case represents drivers finally getting those tips they earned during the period when the company was less transparent about who was actually pocketing that extra cash. Dashers eligible for the settlement will be contacted by the settlement administrator so they can get their piece of the pie that was rightfully theirs in the first place.
No jail time (Score:5, Insightful)
Imagine stealing $17 million and not going to jail.
Re: (Score:1)
As long as I didn't have to pay it back, I'd go to jail for a few years for $17M.
Re:No jail time (Score:5, Informative)
I went through the brief, but I couldn't find how much was stolen. Only that DD settled for $17m. They could have taken more or less than that amount from drivers. I'd be curious to know what the number is.
They didn't steal $17mil (Score:2)
It was more like $10, but they did it 1,700,000 times.
Re:No jail time [for corporations] (Score:1)
Consequences are only for plebeians.
This is Pluta!
If you or me steal money (Score:1)
But when a corporation or a rich person steals money it's always a bureaucrat it shows up to enforce the law.
I don't think there's a better example of our multi-tier justice system than that.
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A cop is a badge in a gun shows up the haul us away
Can you reword that in English?
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Almost, but not exactly. With a "tipped minimum wage", at least in the US, there are two levels set: a minimum wage of $MW and a tipped minimum wage of $TM, both per hour of work. The employer must pay the employee at least max($TM, $MW-$tips). If the employee gets a lot of tips, the employer must still pay at least the tipped minimum wage. Not all states allow this, and even where they do, the details vary greatly [dol.gov] across the US.
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In the restaurant case, the "base pay" is the tipped minimum wage. The tips count toward the obligation of regular minimum wage. They make up the difference if the tips don't reach that. Regardless, a tip is above and beyond the base pay.
Doordash is using the terms "base pay" and "tips" but they are counting the tips toward the base pay itself. That makes it not mean what the words mean.
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Wage theft is the most common type of theft, one of the most common crimes in general. It's also one of the least prosecuted.
People should be up in arms about it, but they are too distracted by the prospect of someone committing benefit fraud to deal with the issue that affects them far more.
Crooks (Score:2)
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(insert: They're the same picture meme [knowyourmeme.com])
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Why do you hate capitalism.
Why do you hate honest fair dealing?
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Everything works out great when you let the wealthy and the corporations do whatever the fuck they want.
We need to go back to the planned economy and emulate pre WW2 Russia, Everyone had it much better then, and all were happy. Once the proletariat seizes the means of production and eliminates the bourgeoisie, it will usher in a perfect world. Right Tovarishch ?
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What a strawman! Strawmanishch!
You Keep Using That Word, I Do Not Think It Means What You Think It Means.
Learn to differentiate between sarcasm and straw man. Indeed, if I wasn't going sarcastic, one might believe that I was agreeing with you, as the wealthy and the corporations doing - as you put it "what the fuck they want.
If doing anything, I would be Poeing you, if a person was dense enough
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an intentionally misrepresented proposition that is set up because it is easier to defeat than an opponent's real argument.
can you guess what your "intentionally misrepresented proposition" is? can you also guess what you did to attempt to defeat my actual argument? I don't ask much out of you people.
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You understand that sarcasm through text is near impossible to detect.
an intentionally misrepresented proposition that is set up because it is easier to defeat than an opponent's real argument.
can you guess what your "intentionally misrepresented proposition" is? can you also guess what you did to attempt to defeat my actual argument? I don't ask much out of you people.
Well, let's see here and do a little analysis. You wrote that "Everything works out great when you let the wealthy and the corporations do whatever the fuck they want."
Okay, initially that could have been sarcasm, but then there is the inclusion of the word "fuck", which usually indicates a certain amount of sincerity.
So after making the assumption that you want exactly the opposite of what you wrote, not sarcasm, but being sardonic, I replied with sarcasm, as an alternative situation, one that has be
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We need to go back to the planned economy and emulate pre WW2 Russia, Everyone had it much better then, and all were happy. Once the proletariat seizes the means of production and eliminates the bourgeoisie, it will usher in a perfect world. Right Tovarishch ?
The irony of that is that it's more or less exactly what a huge number of supposedly conservative Republican voters seem to have voted in Trump with expectations he would do that. Basically, they hate socialism and want price controls, guaranteed jobs, and controls on housing costs.
Tips (Score:5, Informative)
If you want to give someone a tip, use cash.
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I'd have to go my bank to get cash. As ATMs outside of my bank's network charge me a fee (actually I'm charged TWO fees)
Re:Tips (Score:4, Informative)
(You may know this already?) But the problem with tipping DoorDash delivery people in cash is, it doesn't show up on the initial "offer" screen when they're asked if they want to accept a given delivery run. Because DoorDash pays so darn poorly as "base pay" for deliveries? Drivers really don't even want to accept food delivery orders when there's no indication of a tip that goes above and beyond that base amount.
If you're using DoorDash for a pizza delivery, that might be the exception to the rule. (Most experienced Dashers know that pizza deliveries often involve cash tips, because people are kind of "programmed" to handle tips that way with those already.) But otherwise? You're liable to get cold food and a slow delivery, only accepted by some driver who just took your order because he's desperate to improve his order acceptance/completion stats. So you might not even feel good about handing over that cash tip when he/she does arrive.
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You're right, of course. But the reality is? What DoorDash and other gig delivery apps like it are calling a "tip" is really more of a bid for service. How serious are you about being hungry and wanting your order delivered ASAP? The people who put in a higher amount as the "tip" are really just placing their "high bid" to compete with other customers for drivers' attention and interest in taking your order.
Re: Tips (Score:3)
I tried to tip an Uber driver with cash, and was told they were not allowed to accept cash.
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Why AC? :P
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Why not? There's a weird misconception on Slashdot that AC posters are all illiterate trolls. The majority of my posts are made AC, and all of my posts going back 20 years were AC until Slashdot forced us to create accounts. AC is one of Slashdot's best traditions, using it to make non-trolling posts helps to keep it alive.
I am not the AC you replied to.
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The easiest way to tip your driver is through the app. At the end of your trip, you’ll be prompted to rate your driver. Once you provide a rating, you’ll be given the option to add a tip. Giving cash directly to your driver is also an option.
https://www.uber.com/us/en/rid... [uber.com]
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I tried to tip an Uber driver with cash, and was told they were not allowed to accept cash.
Because the company can't directly steal cash tips. It's lovely when these companies use the argument they don't need to pay a decent wage because tips will make up for it, then take the tips to cover the measly base pay they offer. I believe back in school we would have referred to that type of behavior as very chode-like. Now? It's admired as inspired profit-first thinking. Progress.
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I tried to tip an Uber driver with cash, and was told they were not allowed to accept cash.
Fine. I’m just going to leave this 10er on the dash.
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They might eat your fries, or worse, because they'll think you were not planning on tipping them.
I saw a short video where the customer was waiting for their delivery person with a nice cash tip. The delivery person actually refused it and apologized for writing a nasty note because there was no tip with the order. At least that was harmless.
We usually just cook our own food, which gives us healthier, tastier and higher quality food at half, or less, the cost of restaurant prices. The few times we want take
Re: Tips (Score:2)
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They might eat your fries, or worse, because they'll think you were not planning on tipping them.
I saw a short video where the customer was waiting for their delivery person with a nice cash tip. The delivery person actually refused it and apologized for writing a nasty note because there was no tip with the order. At least that was harmless.
We usually just cook our own food, which gives us healthier, tastier and higher quality food at half, or less, the cost of restaurant prices. The few times we want takeout, we show up at the restaurant. When I moved to the US tipping was not expected for takeout, but it seems to be expected now.
One of the strangest things I see is younger people who complain about never having enough money, living off things like DoorDash or Uber eats. Protip for the young'uns. Making your own meals is cheaper, and ends up with a much better product.
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If you want to give someone a tip, use cash.
I always try to carry cash to cover tips to ensure the server gets it all.
Reverse Penalty (Score:3)
Do the math (Score:5, Informative)
By the figures given in TFS, each driver will get just shy of $280.00. That's for a period of 21 months, meaning each driver is making in tips the princely sum of almost $14.00 per month, or about $3.50 per week. So basically, for a week's worth of delivering, they're receiving an amount equivalent to one tip for one delivery to one cheapskate customer. Way to go DoorDash!
This is why corporations run roughshod over everyone - because they get a slap on the wrist for committing a felony against tens of thousands of victims. Companies that pull this shit should be fined an amount that threatens to bankrupt them - not an amount that they can collect from under the couch cushions in the c-suite offices. Also, c-level asses should be in jail for this shit - and by "jail", I don't mean Club Fed, I mean a cell in GP among gang-bangers.
With great privilege should come great responsibility. But the fuckers at the top levels of these companies accept ZERO responsibility toward the society which funds their privileged lives. It's time for torches and pitchforks folks!
Opt out. (Score:3, Insightful)
The whole class of middlemen that has risen up is just so distasteful to me that I refuse to participate. Good take out and delivery restaurants I've used for years - sometimes decades - are now forced to be involved with these companies and their margins are thinner than they've ever been. Some have had to close as the number of places offering delivery have skyrocketed, while the actual number of orders have not kept pace. And the idea of my delivery being accepted or prioritized based on tipping in advance? Fuck that.
So I call directly and order for pickup. Or. If they also offer their own delivery option, I'll select that. But I will not use a third party service. Uber Eats, SkipTheDishes, DoorDash... they can go hang.
Made the decision early too. Not only won't I use them... I never have.
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I used Uber Eats personally once because they offered $30 on the first order. I used a chunk of that money to tip the driver but even with the $30 the cost was significantly higher than doing a pickup because they often inflate the base price of the items significantly, and there are additional taxes and fees specific to the delivery.
Not paying attention (Score:2)