WhenDoorDash announced changes in its tipping model last month
[https://techcrunch.com/2019/07/24/doordash-changes-tipping/], it was certainly
a step in the right direction. Some workers, however, have said it?s not enough.
In addition to wanting fair wages,they want back pay
In light of DoorDash?s announcement,labor group Working Washington said a key
[https://payup.wtf/blog/2019/8/22/statement-re-doordash-announcement-on-pay-model-today] : ?Will they pay workers backpay for the customer tips the company has been
misappropriating since 2017??
?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,? a DoorDash spokesperson told
TechCrunch via email in response to a question about whether or not DoorDash
would back pay its delivery workers.
When Instacart changed its tipping practices earlier this year,it also
retroactively compensated shoppers when tips were included in the payment
[https://medium.com/shopper-news/state-of-pay-doing-right-by-our-shoppers-81de4b66580] . DoorDash, however, does not see the need for back pay.
?An independent third-party research firm has confirmed that Dashers were paid
as was explained on our website and in our app: Dashers received a minimum base
bay from DoorDash, plus 100% of customer tips, plus additional pay for some
orders to reach the guaranteed minimum,? the spokesperson said. ?A reminder that
under our old model, DoorDash would boost pay if a customer left little or no
tip. Although boost pay was intended to help Dashers, we recognize that it also
had the unintended effect of making some customers feel like their tips didn?t
matter. Under our new model, every dollar a customer tips will be an extra
dollar in their Dasher?s pocket.?
Additionally, DoorDash says it will increase the amount it pays on average
through base pay and bonuses. Ideally, that will increase overall earnings for
?This commitment is incredibly important to us, which is why we?ll be working
with that same independent third party to ensure that Dasher earnings under this
new model increase,? the spokesperson said.
As DoorDash previously announced, the new payment policies will go into effect
this month following feedback from its tests. Since the announcement, however,
DoorDash has put $30 million toward a campaign committee to establish a 2020
ballot initiative that would enable companies to provide workers benefits,
establish wage commitments and guarantees, offer flexibility and establish that
drivers are not employees.Lyft and Uber have also each put $30 million into the
[https://techcrunch.com/2019/08/29/uber-and-lyft-are-putting-60-million-toward-keeping-drivers-independent-contractors/] . Meanwhile, gig worker protections bill AB-5 passed.
AB-5 would help to ensure gig economy workers are entitled to minimum wage,
workers? compensation and other benefits by requiring employers to apply the ABC
test. The bill, first introduced in December 2018, aims to codify the ruling
established inDynamex Operations West, Inc. v Superior Court of Los Angeles
[https://www.courts.ca.gov/opinions/archive/S222732.PDF]. In that case, the
court applied the ABC test and decided Dynamex wrongfully classified its workers
as independent contractors.
According to theABC test
[https://www.courts.ca.gov/opinions/archive/S222732.PDF], in order for a hiring
entity to legally classify a worker as an independent contractor, it must prove
the worker is free from the control and direction of the hiring entity, performs
work outside the scope of the entity?s business and is regularly engaged in an
?independently established trade, occupation, or business of the same nature as
the work performed.?
The bill has yet to be signed into law, but Governor Gavin Newsom is expected to
do so. Moving forward, we can surely expect DoorDash to continue advocating for
its independent worker model. We also can expect organizers from Working
Washington to keep advocating for better wages and protections.
Image Credits:?Photo by Tibrina Hobson/Getty Images for Los Angeles Times Food Bowl?/?Getty Images