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Doordash will pay nearly $ 17 million in a regulation after the food delivery platform has used advice for customers to subsidize the salary of its deliveries to New York instead of allowing them to keep advice in addition to Their wages guaranteed, announced the prosecutor general of New York Letitia James on Monday.
“It is simply fundamentally unfair,” said James, a democrat at a press conference. “Customers had no reason to believe that these tips were used by Doordash to reduce its costs.”
Between May 2017 and September 2019, Doordash used a guaranteed remuneration model that allowed the Dasters to see how paid they would be paid before accepting a delivery, but the company included advice to compensate for the basic salary it guarantees To workers, rather than paying the full amount of the point, according to James.
As part of this remuneration model, workers only received their advice if they were more than the amount that Doordash guaranteed to pay them for the order, said James. The company would pay a minimum of $ 1 in the Dasher and use customer advice to compensate for the rest of the guaranteed amount.
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Doordash will pay nearly $ 17 million in a regulation after the food delivery platform has used customer advice to subsidize the salary of its deliveries in New York. (Michael Nagle / Bloomberg via Getty Images / Getty Images)
For example, for orders with a guaranteed amount of $ 10 when a customer did nothing, Doordash would pay $ 10 for the minimum of $ 1 plus the rest of $ 9, giving the Dasher a total of $ 10. But if the customer has changed $ 11, Doordash would only pay the minimum of $ 1, leaving the Dasher with only $ 12.
Doordash also misled customers to believe that their advice went directly to the dasher.
The company will pay $ 16.75 million in return which will be distributed to Doordash workers who made deliveries between May 2017 and September 2019 in New York. Eligible workers will be contacted by a regulation administrator to obtain information on how to submit a complaint, and DOORDASH must pay up to $ 1 million in payment administrator fees in addition to the restitution.
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The New York Attorney General, Letitia James, who announced the settlement with Doordash, described the old model of guaranteed remuneration of society as “fundamentally unjust”. (Smith Collection / Gado / Getty Images / Getty Images)
“Delivers are an integral part of our communities, working tirelessly to bring food and other essential elements directly to our doors in all conditions,” said James in a press release. “Doordash has misleaded customers who generously tilted and deceived the dashers who deserved to be paid in full.”
“These regulations refers millions in the pockets of workers and ensures the transparency of Doordash’s payment practices in the future,” she continued. “My office will continue to protect New York workers from misleading business practices and make sure they receive all the money they have made.”
Doordash is also necessary to maintain a remuneration model which guarantees that advice is paid to the entire dasters without having an impact on the contribution of the company to guaranteed remuneration. The company must also disclose the details of the policy of remuneration for dasters and customers.
The guaranteed remuneration model had an impact on New York Dasters from May 2017 to September 2019. (Photos Reuters / Carlo Allegri / Reuters)
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The company said that the remuneration model used at the time was no longer used.
“Although we think that our practices properly represented the way dashers were paid during this period, we are pleased to have resolved this year’s matter and we are impatient to continue to offer a flexible way for Millions of people achieve their financial objectives, “Doordash said in a statement.
