3 ms·
The google term you want is "tip credit" -- it is common and legal federally and in most states to deduct tips from your hourly wage. Washington state is one of
by Domenic_S 8y ago
The google term you want is "tip credit" -- it is common and legal federally and in most states to deduct tips from your hourly wage. Washington state is one of the few where tip credits are not legal.
This is a very common setup in other pay structures as well, such as commissioned sales where you are paid a "draw" (such as minimum wage) and you don't paid get any commission until your commissions exceed minimum wage.
What's more, the tip money did go directly to the driver; Instacart just decided to pay less.
It's a pretty inhumane thing to do but on the face of it I don't see how it's wage theft. Welcome to the gig economy.
- tareqak 8y agoHow is this allowed by law? If you have to pay back your minimum wage before you get your commission then it’s not really a minimum wage.
- Domenic_S 8y agoThere are lots of kinds of draw, but this kind is essentially a loan against your future commissions (or in our context, against your tips). Here's some more information about how it works legally: https://corporate.findlaw.com/human-resources/legal-considerations-when-accepting-a-draw.html https://corporate.findlaw.com/human-resources/legal-consider...