They used tips (and may still use tips) to refund themselves for the minimum pay offered to dashers.
The language was very deceptive, as giving a tip did not always increase the amount of money received by a dasher.
The language was very deceptive, as giving a tip did not always increase the amount of money received by a dasher.
Otherwise, DD used the tip to pay them.
Meaning - if you somehow work one job and it takes an entire hour - and you got a $10 tip - you would only make $29, not $29 + $10x1 = $39.
If you worked 1 hour and did 5 jobs - each with $10 tips - you would get paid $50 - not $29 + $10x5 = $79.
OP was making a joke that no, it's not "as always" because there wqs a pretty large scandal just a few years ago centered around DoorDash not paying 100% of tips.
Not trying to make a stance one way or another, just wanted to make sure I understand what you meant by this correctly.
Is what you are describing essentially the same way it works in the restaurant industry for waiters/servers?
TLDR: waiters/servers in the US typically have a base pay that’s below the minimum wage, but they get to keep all the tips. However, if a waiter/server at the end of their pay period makes less with their base pay+tips than what the minimum wage for the area would be, the employer is legally on the hook for making up the difference to the employee.
I believe that's the federal rule, but several states with higher than federal minimum wages have a uniform minimum wage for tipped and non-tipped workers. If I'm reading the chart correctly[1], those states/territories include Alaska, California, Guam, Minnesota, Montana, Nevada, Oregon, and Washington.
[1] https://www.dol.gov/agencies/whd/state/minimum-wage/tipped