HGD Files Class Action Against DoorDash for Unlawful Taking of Driver’s Tips
ATLANTA, GA: (February 8, 2019) – Attorneys from Heninger Garrison Davis, LLC’s class action group filed a class action complaint today against DoorDash, Inc. (Defendant) for breach of contract and unlawfully taking tips that were intended for their delivery drivers. DoorDash is a national food delivery service, and the case arises from their improper conversion of tips directed and intended for drivers.
DoorDash is an on-demand food delivery service which delivers meals from national restaurant chains and local restaurants, as well as groceries from places like Wal-Mart. When a customer places an order with DoorDash, a customer has the ability to leave an additional gratuity, or tip, for the DoorDash delivery drivers (called “Dashers”). The default “Dasher Tip” is currently set to 10% of the order, but the customer may also leave a custom tip.
In terms of compensation to its drivers, DoorDash promises each driver a guaranteed base pay for each delivery job, plus 100% of the gratuity. However, DoorDash does not remit the full amount of gratuity that a consumer leaves for a Dasher. Instead of paying this tip to the Dasher, DoorDash actually uses the gratuity to cover its costs for the guaranteed base pay promised to Dashers. For example, if DoorDash promised the Dasher $5 base pay for the delivery, and the customer tips the Dasher in an amount of $2, the Dasher still only gets $5.
On its website and other marketing materials, DoorDash deceptively advertises and represents that a gratuity can be added for a delivery and that the driver would receive “100% of tips” from the customer. DoorDash does not disclose that it keeps a substantial portion of this additional charge for itself as its own additional revenue to offset the guaranteed base pay promised to Dashers. This deceptive compensation scheme is illegal and violates federal and state law.
HGD attorneys Jim McDonough and Lew Garrison bring the action on behalf of the Dasher plaintiffs against DoorDash, Inc. for breach of contract, negligent misrepresentation, fraudulent inducement, conversion, unjust enrichment, and violations of consumer protection laws. The lawsuit seeks the return of tips rightfully earned by Dashers in order to remedy DoorDash’s improper withholding of those tips, which resulted in Dashers not receiving 100% of the tips that were intended for them.
If you are a current or former Dasher and would like to be considered to join the lawsuit as a Class Member, please
to fill out the requested information.
- Filling out the form does not add automatically add you to the class, but will allow us to review your information to see if you are eligible to join.
Heninger Garrison Davis, LLC, is a national law firm and our attorneys defend valuable rights for our clients. To determine if you should file suit, consult one of our qualified lawyers as soon as possible to understand your options. We do not charge any fees upfront. In fact, we will only charge attorney’s fees if we obtain a financial settlement for you. If you do not win, we get nothing. Call us today for your free case evaluation 1.800.241.9779.