Doordash does not pay overtime. Doordash delivery drivers are independent contractors providing delivery services as a business and thus are not Doordash employees.
Therefore, employee guarantees like minimum wage and overtime do not apply.
Understand how payment works as an independent contractor
Unfortunately, Doordash does not do a good job explaining that their couriers are independent contractors and what that means to Dashers.
All they do is put enough language in the contract to cover themselves.
CONTRACTOR understands and expressly agrees that they are not an employee of DOORDASH or any restaurant, other business or consumer and that they are providing delivery and other services on behalf of themself and their businessDoordash independent contractor agreement
The problem is that too many people rush into the Doordash signup process with one thought: How much money will I make? For all they know, independent contractor is just another form of employment.
But you aren't an employee. The reality is, you're running a business. As a business owner you don't get the legal employment protections. There's no guarantee, no safety net, and no overtime.
Your payment from Doordash is on a delivery-by-delivery basis. Dashers are paid by the task or delivery. That includes one or all of the following components:
- Your delivery pay, paid by Doordash.
- Any customer tip that is given
- Peak pay or bonuses per delivery that sometimes occur during busy periods
- Larger incentives such as challenges that pay a bonus for completing a certain number of trips.
Doordash does not pay you for your time.
You are not paid hourly. There's no hourly rate or salary, which makes it impossible to calculate overtime pay.
You also have the freedom to deliver for other gig economy companies at any time. Doordash even makes that clear in the contract. It would be hard to expect an hourly based payment if you are providing services for a competitor during that time.
Many independent contractors for Doordash are what I call Accidental Business Owners. You never really planned to be a business owner, but here you are.
Should Doordash pay overtime?
The only time Doordash should pay overtime is if you are an employee. However, when you signed off on the independent contractor agreement, you agreed that you were not.
Whether Doordash should be using independent contractors or not is a different question. I think there's a solid case to be made that Doordash is trying to get drivers who think like employees, all for the independent contractor price.
Here's one thing to keep in mind. If this were a traditional job and if Doordash were to pay overtime, they would also limit your opportunities to deliver. If it now costs them more money for you to work extra, they will limit those extra hours.
One of the most significant advantages of the gig economy is that you can work as much or as little as you want. You set your own schedule. You can Dash full-time if you want or just do this as just a side hustle for extra cash.
I believe your potential is far greater if you do this with a business mindset. If you take seriously this idea that you're running a business and treat it like a business, you take control of your circumstances. Doordas can't control or limit your earnings when you make your own decisions.
Does Doordash pay overtime? They do not. In my opinion, that's a good thing, because it means they are not my employers. It also means that I can choose when, where, and how often I deliver for Doordash.
Employees who work overtime get extra money for their 41st hour of the week and beyond. As a business owner who can create your own Doordash tips and tricks, you have control over your earnings for all the hours you work.