That having been said, the concept of defining contractor wages in relation to customer tips is new to me. I could see a legal argument being made in the employer's favor if the worker gave due consent to the transaction.
The idea here would be: Instacart states somewhere on the order prior to pickup 'if you choose to accept this order, you will receive $10, of which $.80 will come from us.' Since the delivery worker isn't running a 'shift' as an 'employee,' but just coincidentally happens to be running Instacart orders for 10 hours straight, this counts as one of many transactions that they've accepted and hence waived the legal right to complain about.
If this legal fiction sounds absurd to you, you're not alone.
Edit: welp, even that says it 100% goes to the person doing the shopping. Gross.
Welcome to the world of 'tipped wages'. In my state, every paycheck, the first $520 worth of tips effectively goes straight to your employer for the purposes of paying your minimum wage and then you can have whatever is left over.
Only Instacart believes this.
But boy I’d love to dis-enshrine it.
That's simple fraud. It's like going door to door collecting money for a charity and then just pocketing the money. Potentially Instacart will need to refund those 'tips'
The strange thing about this is that it may actually be fraud against the people buying from instacart. The ones giving the tip. I'm curious then what kind of damages a customer could sue for beyond the amount of the tip. And I'm also curious if instacarts TOS for customers forces arbitration and prevents class action lawsuits.
This should be interesting to watch unfold.
I think this sentence says the opposite of what you intended it to.
But I have never worked in a restaurant so I could be completely wrong.
The problem is that they use the tip as an excuse to pay basically nothing. It's not acting like a real tip.
There is, because the pay can't go negative.
> The legal system is not staffed by robots, either. I don't see how they can defend a class action regardless of what words they've written on a TOS.
It depends on what the lawsuit is for. Normally we have things like "minimum wage" but those don't apply if you manage to convince everyone it's a contractor situation. If they can be classified as employees then there's all sorts of lovely anti-tip-taking law. But that's a big if. And I don't think contractors have tip laws? It's not generally illegal to say one thing about how your company allocates money coming in and then do another.
I feel like for someone somewhere in the attorney general's office, prosecuting these should be someone's full time tax paid job.
Suppose that we decide to call dogs cats. In that case, what is a domesticated canine? Answer: it’s a dog, whatever you choose to call it.
(Pretty sure I butchered that, but hopefully the point still came through.)
My understanding is that the Fair Labor Standards Act does not allow for employers to whithold tips.[0]
Gratuity/tip is a legally recognized concept. You can't just throw the word in your app and do what you want with the money it generates. There are legal expectations around how the money goes from the customer to the worker.
[0] https://www.ramoslaw.com/is-your-employer-committing-wage-th...
[edit] Added "not"