Gothamist reports:
More than 8,300 delivery workers allegedly cheated out of tip money by defunct alcohol-delivery platform Drizly will share a $4 million payout – or about $500 apiece – under a restitution agreement announced Monday by the New York attorney general’s office. The funds will go to former delivery workers across the state, including 1,375 in New York City, where stores in every borough partnered with Drizly, the attorney general’s office said.
According to the attorney general’s investigation, Drizly pressed customers hard for tips, adding a 10% default tip, which could be adjusted, on every tab. The platform begged, “We humbly ask that you tip drivers, as they are critical in making every Drizly delivery a reality.” But the platform did nothing to ensure the tip proceeds went to workers, according to the attorney general’s office. It said Drizly instead sent all of the tips to store owners.
Read the full article. Drizly was shut down earlier this year after Uber bought them and folded the service into Uber Eats. Hit the link for a recap of similar judgments against New York employers won by Attorney General Letitia James.
My office is making Drizly, a former delivery platform owned by @Uber, pay $4 million for failing to ensure its delivery workers got the tips they earned.
All of this money will go back into the pockets of these hardworking New Yorkers.
— NY AG James (@NewYorkStateAG) December 17, 2024
Now, these workers will finally get the money they earned.
We’ll always protect hardworking people and make sure they aren’t taken advantage of.https://t.co/HXg6dtMXLS
— NY AG James (@NewYorkStateAG) December 17, 2024
For years, Drizly encouraged customers ordering alcohol from liquor stores to tip delivery workers and even included an automatic 10 percent tip at checkout.
But Drizly sent workers’ tips to the store owners, and these hardworking people didn’t get the money they earned.
— NY AG James (@NewYorkStateAG) December 17, 2024