Gaidar Institute experts: regulation of tip payments will become tougher

The trend towards tightening the regulation regarding payment of tips to employees is currently observed both in the online and offline sectors, ТАSS reported. This trend has been revealed by researchers at the International Best Practices Analysis Department of the Gaidar Institute in their study: «Monitoring of Legal Regulation of Digital Economy».

«We can generally identify a trend towards tightening the regulation regarding employees’ tips, both in the online and offline sectors. For example, in 2023, a special law was passed in the UK obliging employers to pay tips," said Maria Girich, a researcher at the International Best Practices Analysis Department of the Gaidar Institute.

She specified that in Russia the proposed draft law on the platform economy, which covers platform employment, does not currently regulate this issue. «It can also be noted that today the formal offers of employment platforms Courier, Ozon Job, Wildberries (WBJob, WB Courier, WBGo), Yandex (Yandex. Food, Yandex. Taxi, etc.) the issue of payment of tips and commissions is not regulated," said Maria Girich.

The study highlights that if the hiring is carried out under an employment contract, in accordance with the letter of the RF Ministry of Finance, waiters’ tips are considered income in terms of a gift and are not subject to personal income tax if transferred by an individual directly to the waiter. «But if tips are transferred first to the business entity, such income is no longer considered a gift. At the same time, the RF Ministry of Finance emphasizes that in this case, the employer can deduct remuneration for accepting tips under the agency agreement," the study says.

If this approach is applied to platforms, for example, taxi companies operating through platforms have the right to charge a driver a fee for payment. And if a person works on the platform under a civil contract, the platforms can charge a commission on tips, acting as agents or commission agents, the study specifies.

Tips in the USA

In February 2025, in the United States, Amazon and DoorDash delivery services were ordered to pay fines for non-payment of tips to their delivery drivers. Back in 2019, the Federal Trade Commission (FTC) began an investigation against Amazon following drivers’ complaint about a reduction in wages. Amazon Flex delivery service promised drivers earnings from $18 to $25 per hour, as well as full payment of tips, the study says.

So, starting from 2016, Amazon decided to cut labor costs on drivers and reduced the payment below the promised one. The rate was calculated by the algorithm, taking into account the tip amount, so that the promised minimum hourly rate was covered by tips.

«Amazon provided drivers with general information about earnings, that is, a single amount without being divided into the minimum wage and tips. In other words, Amazon promised to pay 100% of the tips that customers left for delivery drivers, but in fact about a third of the tips were used to reduce the company’s labor costs, that is, to subsidize hourly rates of drivers’ salaries. In other words, these payments were not additional earnings for drivers. The FTC has issued a decision to refund $61 mn to Amazon drivers. In addition, Amazon will pay another $3.95 mn to the District of Columbia for deceiving consumers who thought that their tips were being used as additional earnings for the driver," the researchers explained.

Experts note that a similar scheme was used by DoorDash, a delivery company which introduced a «guaranteed payment» scheme.

Monday, 17.03.2025