Food-delivery platform DoorDash Inc. must face allegations that it impermissibly used customer tips to meet minimum pay requirements for drivers, after a California appeals court declined Monday to compel arbitration of claims filed on behalf of the state.
Delivery driver Brandon Campbell sued DoorDash under California’s Private Attorneys General Act, which authorizes an employee to sue their employer for labor violations on behalf of the state, and to collect civil penalties.
The company guarantees a certain minimum pay to its workers for each delivery, an amount determined by various factors including order size, delivery distance, and logistics, Campbell said. DoorDash’s policy of using customer tips to meet that minimum payment violates state labor laws, which prevent employers from collecting an employee’s gratuity, he alleged.
