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Company settles $17M wage lawsuit

Company settles $17M wage lawsuit

PLUS: How many people have layoff anxiety?!

February 27, 2025

Today’s edition is brought to you by The Work Wellbeing Playbook. If you’re ready to feel more grounded, inspired, and supported at work, grab the Work Wellbeing Playbook today —completely free! 🌱

Read time: 1.5 minutes

Good afternoon party people! Happy Friday eve. Got some quick hits for y’all today.

PARTY PLAN 🎉

🚗 DoorDash settles $17M wage dispute lawsuit

😖 1 in 3 Americans have layoff anxiety

But first, MEMES!

MEME OF THE DAY

I paid for my employees vacation to Jamaica
But they were in for a surprise
Upon arrival, they realized I had only booked them one way tickets
They’d be working there permanently
I reduced their salaries from $70k to $4 an hour to reflect the local economy
Offshoring is… x.com/i/web/status/1…
— Chase Passive Income (@chasedownleads)
1:58 PM • Feb 19, 2025

Pay

DoorDash settles $17M wage dispute lawsuit

DoorDash will pay $16.75 million to settle a lawsuit filed by New York Attorney General Letitia James alleging that the delivery company used workers’ tips to subsidize their base pay, according to a news release earlier this week.

From May 2017 to September 2019, DoorDash kept from customers that the “tip” they added to the delivery charge would not be separated from delivery workers’ guaranteed base income. Instead, “DoorDash would guarantee pay to a delivery worker, and then only actually pay them whatever the tip did not cover.” So why is every restaurant in the country getting sued for doing this to servers?!

The settlement will be distributed to an estimated 63,000 delivery workers in New York who worked for DoorDash during the relevant period. Under the settlement, DoorDash also agreed to use a pay model that ensures workers:

receive tips in their entirety without an impact on their guaranteed pay.
transparently share pay policy details with workers and consumers, including providing a breakdown of base pay, promotional bonuses and tips to delivery workers for every delivery.
and provide workers access to their delivery history for at least four years.

“DoorDash misled customers who generously tipped and deceived Dashers who deserved to be paid in full. This settlement returns millions to the pockets of hardworking Dashers and ensures transparency in DoorDash’s payment practices going forward.”

-New York AG, Leticia James.

Layoffs

1 in 3 Americans have layoff anxiety

As many as 1 in 3 Americans say they’re experiencing layoff anxiety for 2025, according to the results of a recent survey by lending firm Clarify Capital.

Layoff anxiety is most pronounced among Gen Z (shocker) and is more than double among remote workers than in-office employees. Of the 1,000 adults surveyed, 1 in 4 said they feel insecure about their job because of the current economic climate.

Workers’ fears aren’t unwarranted; nearly half of U.S. managers said their company is likely to lay off workers this year, according to a January report from ResumeTemplates.

Workers say they are willing to do what it takes to keep their jobs, as 13% don’t have a savings account to fall back on. 46% of employees say they would take on extra work or responsibilities, while a smaller share would move to an undesirable position, go back into the office full time, switch to a part-time role or even accept a pay cut to avoid losing their job, the survey found.

Layoff anxiety is also affecting workers’ career aspirations; 69% of those surveyed consider job security more important than career growth.

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