28 ms·

The tip, or at least a portion of it, goes to the driver. What DoorTrash used to do was steal all or part of the tip in order to subsidize the driver's base pa

The tip, or at least a portion of it, goes to the driver. What DoorTrash used to do was steal all or part of the tip in order to subsidize the driver's base pay. It think they changed their pay model(after public outrage) to not do that, but I stopped delivery driving a long time ago so I can't say that with 100% certainty. For GrubHub, the entire tip goes to the driver.

chrischen 7y ago
This practice can’t really be stopped though. Industries generally adjust their base pay to reflect average tipping income. Doordash was doing it at a dynamic per-order level. But if they can’t do that they can still do it on aggregate based on predicted tips. Basically, tipping an average amount contributes to the problem. Everyone would have to keep raising the tip amounts but that’s not easily coordinated.
- henryfjordan 7y ago
  The restaurant industry operated under the pay model of "you get $2/hour + tips but if you don't make at least minimum wage we'll pay the extra", which is exactly what DoorDash was doing. California outlawed this practice years ago in the restaurant industry, saying you need to pay at least the minimum + tips, none of this $2/hour nonsense. There's no reason they couldn't do the same to the gig economy.
  - vonmoltke 7y ago
    I don't see any indication that California ever had a separate minimum wage for tipped employees. Are you referring to some California-specific provision? Seems like a strange way to do things.
    - Groxx 7y ago
      California has quite a few California-specific employment laws. https://www.worklawyers.com/tip-gratuity-laws-california/ https://www.worklawyers.com/tip-gratuity-laws-california/ ("3.4. Minimum Wage: No Tip Credits Allowed" specifically)
    - mattnewton 7y ago
      Many states do have a separate minimum wage for tipped employees, it's a common practice elsewhere in the states even if it wasn't in California.
      - kasey_junk 7y ago
        It's also true for federal minimum wage.

chrischen 7y ago

This practice can’t really be stopped though. Industries generally adjust their base pay to reflect average tipping income. Doordash was doing it at a dynamic per-order level. But if they can’t do that they can still do it on aggregate based on predicted tips. Basically, tipping an average amount contributes to the problem. Everyone would have to keep raising the tip amounts but that’s not easily coordinated.

henryfjordan 7y ago
The restaurant industry operated under the pay model of "you get $2/hour + tips but if you don't make at least minimum wage we'll pay the extra", which is exactly what DoorDash was doing. California outlawed this practice years ago in the restaurant industry, saying you need to pay at least the minimum + tips, none of this $2/hour nonsense. There's no reason they couldn't do the same to the gig economy.
- vonmoltke 7y ago
  I don't see any indication that California ever had a separate minimum wage for tipped employees. Are you referring to some California-specific provision? Seems like a strange way to do things.
  - Groxx 7y ago
    California has quite a few California-specific employment laws. https://www.worklawyers.com/tip-gratuity-laws-california/ https://www.worklawyers.com/tip-gratuity-laws-california/ ("3.4. Minimum Wage: No Tip Credits Allowed" specifically)
  - mattnewton 7y ago
    Many states do have a separate minimum wage for tipped employees, it's a common practice elsewhere in the states even if it wasn't in California.
    - kasey_junk 7y ago
      It's also true for federal minimum wage.