Attorney General Karl Racine of Washington D.C. filed a lawsuit against DoorDash for allegedly deceiving consumers related to their tips for workers.
In the lawsuit, AG Racine alleged that DoorDash encourage consumers to give tips for food deliveries. However, it is pocketing the tips instead of passing it to the workers who made the deliveries.
Additionally, the attorney general claimed that the food delivery service provider treated the tips as extra profit for itself.
AG’s probe found DoorDash used consumer tips to offset labor costs
AG Racine filed a lawsuit against DoorDash after conducting an investigation into the company’s tipping practices from July 2017 until September 2019. His office found the company’s deceptive payment model, in which a delivery worker receives the same pay in most cases no matter how much tip a consumer gave. The attorney general determined that the company used consumer tips to offset its labor costs.
He is seeking to recover millions of dollars in tip money that consumers thought were passed on by DoorDash to workers. He is also seeking to impose civil penalties against the food delivery service provider.