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The way it has worked in the past is that drivers get 100% of the tip, but the tip amount is subtracted from their base pay. Company tells the worker a deliver
by droopyEyelids 7y ago
The way it has worked in the past is that drivers get 100% of the tip, but the tip amount is subtracted from their base pay.
Company tells the worker a delivery pays $15, you tip $5, the company reduces their portion to $10, the worker gets $15 total. You tip $10? The company pays $5, worker still walks away with $15.
- RHSeeger 7y agoGiven that DD also had a minimum they would pay, regardless of tip, that can also be stated as - We will pay you $X - We will make sure you make at least $Y If you make the wording changes - $X == <wait staff minimum wage> - $Y == <normal minimum wage> Then it becomes clear that this is exactly how restaurants work; with the caveat that it's per delivery instead of per hour.
- gkop 7y agoThis framing would certainly be more transparent. I doubt though that DoorDash would want to explicitly adopt a compensation practice that's illegal in seven states including their home state of California (https://www.dol.gov/agencies/whd/state/minimum-wage/tipped https://www.dol.gov/agencies/whd/state/minimum-wage/tipped).
- RHSeeger 7y agoAssuming you take == as "works the same as" not "is the same monetary value", then what about it is illegal?