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GrubHub agrees to tip-free restaurant fees with NY Attorney General

17
Apr
2014

Online food delivery service GrubHub settled a probe by the New York state attorney general on Wednesday by agreeing to not to charge fees that would allow it to make money off customers tips. The agreement with the state attorney general requires GrubHub Inc to make sure that the fees it charges restaurants for its service, which allows customers to order meals online, does not sap tips from delivery people or other workers. Our settlement with GrubHub changes a billing formula that may have been used by restaurants to shortchange workers out of their hard-earned tips, New York Attorney General Eric Schneiderman said in a statement. GrubHubs current and past contracts may have affected thousands of delivery workers, he said.

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