“For most markets where DoorDash operates, customers are prompted to tip on the checkout screen, with a middle option already selected by default. If they want to, they can adjust the tip later from the status screen while awaiting their food, or even after it’s delivered. That’s changing today; while blaming New York City’s minimum wage increase for delivery workers, DoorDash announced that for “select markets, including New York City,” tipping is now exclusively a post-checkout option”
It seems so ridiculous given tipping fatigue, that DoorDash is making what should be a given sound like a negative.
If a server’ wage plus tip does not federal minimum wage, the business is required to make up the difference. I’m not saying the $7ish an hour federal minimum is a liveable wage.
What makes this extra stupid, is this means the first $5 or so each hour in tips only removes the obligation from the business owner and does nothing to help the server.
That only applies to employees. That does NOT apply to contractors. There is no minimum wage for contractors.
There is no “tipped minimum wage” for most delivery drivers. DD does not have to pay one thin dime if the driver doesn’t make enough tips to reach minimum wage.
Further, the contracted worker is responsible for their own expenses: the IRS says a mile of travel costs $0.655. DD’s usual $2 base pay covers only the first three miles worth of travel expenses, even if the actual travel is much more than 3 miles. I regularly see 12-mile trips with $2 to $2.50 base pay. The driver pays $8 to make these trips; the first $6 of the customer’s tip just goes to expenses before he actually earns anything.
Yes, I agree the whole system is dumb and convoluted intentionally.