DoorDash to Pay Delivery Workers Nearly $17M for Using Tips to Cover Wages | TechCrunch
DoorDash will pay $16.75 million to settle a lawsuit that accused the delivery platform of pocketing workers' tips to cover wages, while 63,000 New York DoorDash delivery workers are set to benefit from the settlement. The company had been using customer tips to offset base pay for workers, misleading customers into believing their tips would directly benefit delivery workers. The new payment structure aims to ensure fair and transparent earnings for Dasher workers.
- This landmark settlement highlights the importance of protecting worker rights in the gig economy, where employees often lack access to traditional benefits and protections.
- What regulatory reforms are needed to prevent similar abuses of power by companies exploiting workers' tips in the future?