Help me understand. Is the distinction here that since they are independent contractors they aren't guaranteed to make a minimum threshold of pay, regardless of tip amount?
That seems to be what they were operating under, but they definitely did not explain this to consumers who assumed that normal tipping practices were being applied. (The checkout looked much like a normal receipt with a tip line.)
It's worth noting that the law is still changing in the area; gig-economy workers in California were classified as employees by the courts, but then this got overturned by a voter initiative, so there are no solid answers as we continue political campaigns and litigation.
The resulting backlash from consumers was severe enough that at least one company operating in this space changed the policy: https://www.theverge.com/2019/7/22/20703434/delivery-app-tip...
It's worth noting that the law is still changing in the area; gig-economy workers in California were classified as employees by the courts, but then this got overturned by a voter initiative, so there are no solid answers as we continue political campaigns and litigation.