4 ms·

Restaurants give you an hourly wage that is less than minimum wage, and if that wage plus tips is still less than minimum wage, they're required to pay you the

Restaurants give you an hourly wage that is less than minimum wage, and if that wage plus tips is still less than minimum wage, they're required to pay you the difference. If your hourly wage + tips is more than minimum wage, restaurants cannot reduce your hourly wage to compensate. My understanding is that DoorDash was doing the opposite: giving you a guaranteed wage and then subtracting the tips from that. It's as if a restaurant were paying you an hourly wage without tips, and then accepting tips on your behalf. If a customer had tipped 100% of the guaranteed pay, do you think the deliverer would have seen any of that tip? Or would it all have counted against the guaranteed pay?

RHSeeger 7y ago
My understanding is that - DD provides a guaranteed wage of $1 per delivery, similar to a restaurtant's "under minimum wage" wage. - DD provides a "you will make at least this much" rate. This is a parallel to normal minimum wage - If the (<tip> + $1) is not at least <this much>, DD covers the difference - If the (<tip> + $1) is more than <this much>, DD pays only (<tip> + $1) The only real differences between that and a restaurant are - The numbers are all per delivery instead of per hour - The sub-minimum wage is $1 instead of whatever it is for wait staff ($2.50 or so?). How these numbers compare depends on how many jobs per hour there are. - The "you will make at least this much" amount varies by the delivery, vs waitstaff where it's a set number for all. If you consider the "you will make at least this much" number to be "if you don't get tipped enough to make this much, we'll make sure to cover the difference for you", it's more clear how it's the same as for wait staff.
unreal37 7y ago
That's not the way DoorDash worked actually. They offered $1 per delivery plus tips, and would increase the wage if the tips didn't meet the expectation. If you tipped the driver $100, the driver would get $101. If you tipped the driver $0, the driver would get $4 - $7 because DD would make up for that.

RHSeeger 7y ago

My understanding is that - DD provides a guaranteed wage of $1 per delivery, similar to a restaurtant's "under minimum wage" wage. - DD provides a "you will make at least this much" rate. This is a parallel to normal minimum wage - If the (<tip> + $1) is not at least <this much>, DD covers the difference - If the (<tip> + $1) is more than <this much>, DD pays only (<tip> + $1) The only real differences between that and a restaurant are - The numbers are all per delivery instead of per hour - The sub-minimum wage is $1 instead of whatever it is for wait staff ($2.50 or so?). How these numbers compare depends on how many jobs per hour there are. - The "you will make at least this much" amount varies by the delivery, vs waitstaff where it's a set number for all. If you consider the "you will make at least this much" number to be "if you don't get tipped enough to make this much, we'll make sure to cover the difference for you", it's more clear how it's the same as for wait staff.

unreal37 7y ago

That's not the way DoorDash worked actually. They offered $1 per delivery plus tips, and would increase the wage if the tips didn't meet the expectation. If you tipped the driver $100, the driver would get $101. If you tipped the driver $0, the driver would get $4 - $7 because DD would make up for that.