Mon, 12/07/2020
DoorDash couriers, or “Dashers,” bring take-out from our favorite restaurants to our doorsteps, brightening our day, and meriting tips symbolizing our gratitude. Whether customers tip generously or not, we expect our tokens of that gratitude to reach the workers who bring us convenience with our orders.
In November 2019, the Washington, D.C. Attorney General’s Office brought a lawsuit under the D.C. Consumer Protection Procedures Act (the “Act”) against DoorDash, alleging the company misrepresented that tips solicited from customers through the DoorDash app would be distributed to Dashers, when in fact “that was rarely the case.” The Act prohibits a wide variety of deceptive and unconscionable, or unethical, business practices. The Attorney General is tasked with enforcing the Act, although individuals have a private right of action to seek an injunction against (or a demand to stop) unfair trade practices.
The Attorney General asserted that DoorDash pocketed money intended for workers, and was misleading about the impact that tips had on Dashers’ base pay. The lawsuit covered the period from 2017 through 2019, when customers throughout D.C. paid millions of dollars in tips to their Dashers but which went instead to DoorDash’s operational costs.
While DoorDash has denied any wrongdoing, it agreed to pay $2.5 million to settle the Attorney General’s claims against it. Of that amount, $1.5 million will be distributed to Dashers who worked during the period covered by the lawsuit. DoorDash will pay the remaining settlement amounts to several charities and to the City for investigating and litigating the case. The settlement also provides that DoorDash must ensure that when a Dasher completes a delivery in D.C., the tips that a customer has given are all distributed to the Dasher, and in addition that the tips a Dasher receives do not impact their pay from DoorDash. The settlement is a high profile example that employers may not keep any portion of tips that workers earn, even as gig economy dynamics obscure other protections for workers.
If you believe your employer improperly failed to compensate you for your work, including by keeping your tips, contact MSE at info@mselaborlaw.com.
