Archive for the ‘Delivery’ Category

Tip Gyp at Doordash

Monday, December 2nd, 2019

Photo: cnbc.com

Seven years ago partners chef Mario Batali and Joseph Bastianich paid a price–$5.25 million–for stiffing a percentage of the tips of their employees at Batali’s pricey Italian restaurants such as Babbo, Bar Jamon, Casa Mono and Esca to pay sommeliers’ salaries.

A chunk of the penalty money went to captains, servers, busboys and others.

Photo: blog.doordash.com

Small potatoes by comparison but “The attorney general of Washington, D.C., is suing food-delivery company DoorDash Inc. for pocketing tips on deliveries,” wrote Allison Prang in The Wall Street Journal. To meet the minimum pay promised deliverymen and women the company applied the tip money customers added electronically. Workers were not given the tip in addition to the minimum.

Karl Racine, DC attorney general, said Doordash also deluded customers who thought they were giving a tip.  Prang wrote: “The attorney general is seeking a court order to force DoorDash to surrender the tips and pay civil penalties.”

Doordash claimed that “the assertions made in the complaint are without merit and we look forward to responding to them through the legal process.”

Why do profitable companies pick on the smallest fries–all of whom are essential to their success–to squeeze them out of their rightful compensation? Is it OK because the owners take the risk and make the investment in their companies or is it wrong under any circumstances?

Photo: newsismybusiness.com

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