The Attorney General in Washington, D.C. has filed a lawsuit against DoorDash.
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D.C. Attorney General Karl Racine alleges DoorDash of practicing unethical (and unlawful) tipping procedures for their workers.
The first time Racine opened an investigation against DoorDash was in March 2019. In the lawsuit seeking damages and restitution, DoorDash is accused of using tips paid by customers to balance the costs of its payments to workers over two years.
Per TechCrunch, a DoorDash spokesperson said in an email, “We strongly disagree with and are disappointed by the action taken today. Transparency is of paramount importance, which is why we publicly disclosed how our previous pay model worked in communications specifically created for Dashers, consumers, and the general public starting in 2017. We’ve also worked with an independent third party to verify that we have always paid 100% of tips to Dashers. We believe the assertions made in the complaint are without merit and we look forward to responding to them through the legal process.”
DoorDash announced in July that it would change its tipping model. In August, the company said that it would not pay its workers the lost wages that came from the change.
In a previous email exchange with TechCrunch, a company spokesperson said “There’s no ‘back pay’ at issue here because every cent of every tip on DoorDash has always gone and will always go to Dashers.
Currently, DoorDash is joining Uber and Lyft in a ballot initiative to not have to treat workers of the companies as W-2 employees.
The three companies is in response to the AB-5 gig worker bill that has prevented them and other companies to declare their workers as 1099 independent contractors.
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