From the office of the DC Attorney General:
“Attorney General Karl A. Racine announced that Drizly, an alcohol delivery company, will be required to pay an estimated total of $6.46 million to resolve allegations that it failed to ensure delivery drivers received tips left by consumers and failed to pay required taxes.
As part of a settlement agreement with the Office of the Attorney General (OAG), Drizly will pay nearly $2 million in restitution to workers who delivered goods ordered through their platform from 2019 through the present. Though Drizly did not divert customer tips to itself, it did not take steps to ensure that tips went to workers. A claims administrator will identify current and former drivers in the next several months and launch a public website where impacted workers can submit claims to receive restitution. Under the terms of the settlement, Drizly will also be required to pay $3.2 million in unpaid taxes and interest, release any claims to $465,833 in taxes it paid to the District during the course of OAG’s investigation, and pay $750,000 to cover costs of the investigation. Under a framework established by the settlement agreement, Drizly may be required to pay additional amounts in both worker restitution and taxes depending on the number of workers who come forward with claims and further calculations on taxes owed. This lawsuit continues OAG’s work to hold gig economy companies accountable and ensure companies do not pocket tips intended for...
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