Washington D.C. Attorney General Karl Racine sued food-delivery company DoorDash Tuesday over tipping practices he called “deceptive.” DoorDash stirred controversy in recent months for using tips left by customers to cover the base pay promised to drivers rather than as a bonus, a practice that’s also raised criticism at Amazon.
Many users expected DoorDash to pass the tips directly to workers as additions to their base pay, and felt like they were duped into subsidizing the company rather than helping individual drivers. DoorDash has since changed its policies, but Racine said the tech company owes drivers backpay for tips that amount to millions of dollars, and the suit also seeks civil penalties. DoorDash told CNBC that the claims were “without merit” and that it planned to respond in court filings.
