4 ms·
> At one point, DoorDash was using tips to subsidized [sic] wages for drivers, meaning employees wouldn’t earn more than their locked-in wages. This is unbelie
by gillytech 5y ago
> At one point, DoorDash was using tips to subsidized [sic] wages for drivers, meaning employees wouldn’t earn more than their locked-in wages.
This is unbelievably dishonest.
- zucker42 5y agoIsn't it also illegal?
- jazzyjackson 5y agoIt's dishonest but it's also basically industry standard for food service, you only make tips above your wage after you subsidize your own wage, for example in my state NC: "In North Carolina, an employer MUST pay at least $2.13 an hour to tipped employees as long as each employee receives enough in tips to make up the difference between the wages paid and the minimum wage ($7.25)." https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/minimum-wage-nc https://www.labor.nc.gov/workplace-rights/employee-rights-re... Tipped Wage is a thing in 43 states: https://en.m.wikipedia.org/wiki/Tipped_wage#State_law https://en.m.wikipedia.org/wiki/Tipped_wage#State_law
- gillytech 5y agoYou know I always knew that a tipped job always had a base pay that was much lower than minimum wage. However I didn't know that the portion payed by the employer was subsidized by tips! This is making me reflect on my own tipping tendencies...
- Dylan16807 5y ago> However I didn't know that the portion payed by the employer was subsidized by tips! It's not, at least not legally. What DoorDash did was basically the same as having a tipped minimum, on a per-delivery basis. Basically, they promised a certain amount of money for each delivery, along with a minimum payment of $1. So if $1+tip was smaller than the promise, DoorDash made up the difference. If the tip was really big, then the driver would get exactly $1+tip.
- Jasper_ 5y agoThe DoorDash UI prevented you from giving a "really big" tip. It topped off right at the point that drivers would actually start getting tipped in your math.