DoorDash recently gave insight into how it will abide by local laws in Seattle, Washington, and Virginia.
On Saturday, it addressed some of the changes affecting the delivery platform because of legislation that has gone into effect in Seattle. They include implementation of a minimum pay requirement of $26.40 per hour before tips, instating a regulatory response fee, modifying platform access, and retiring the Top Dasher and Priority Access programs.
“Throughout this process, we warned the city that while well-intentioned, these extreme policy changes would have adverse effects on all members of our community–Dashers, merchants, and consumers,” said DoorDash in a statement.
The food delivery service will review employee earnings after the completion of each delivery order and pay will be adjusted for those who earn below the required minimum wage.
DoorDash is also now subject to a regulatory response fee in Seattle and as a result has increased the price for consumers. Because of this, the service is lowering the suggested tip amounts for the delivery driver that customers receive when placing an order.
DoorDash warned that these changes may also negatively impact service in the area for its merchant network.
“Merchants may experience significant declines in order volume as well as negative impacts to service. Some merchants will now also be required to provide additional information about items for delivery,” said DoorDash. “This major policy shift is unprecedented, and we will continue working to chart the best path forward for the communities we serve by testing and reviewing any changes we make.”
On Tuesday, Virginia introduced a bill that will affect DoorDash’s employee network. The platform lauded the legislation for its positive impact.
“We were thrilled to see Virginia Delegate Joshua E. Thomas introduce HB 734 last week,” said DoorDash.
The bill will expand benefits for Dashers and other delivery workers, requiring companies like DoorDash to make a contribution match of an eligible workers’ earnings into a portable benefits account—one that enables them to save for retirement, cover health care costs, or compensate for lost income.
“Whether it’s to meet a savings goal or help pay their bills, dashing fills a unique role for thousands of people across Virginia, and our policies should reflect that,” said Chad Horrell, DoorDash’s senior manager of government relations, in a statement. “This bill not only acknowledges the evolving landscape of work but puts forward an approach that is tailored to the way Dashers use platforms like ours without sacrificing the flexibility that draws so many people to this work in the first place.”
Related: USDA Appoints Senior Staffers; Instacart Serves Military Families