DoorDash to Pay Millions After Misusing New Yorkers Tips

DoorDash has agreed to pay nearly $17 million to settle claims that it improperly used customer tips to cover delivery worker wages in New York, rather than allowing drivers to keep their tips on top of their base pay.

DoorDash to Pay $17M to NY Delivery Workers Over Misused Tips

According to New York Attorney General Letitia James, DoorDash used this controversial pay model from May 2017 to September 2019. The company guaranteed workers a base payment per delivery, but instead of adding customer tips on top, it factored tips into their base pay, essentially reducing what DoorDash itself had to pay. Additionally, customers had no idea their tips were being used to offset company costs rather than going directly to workers.

Who’s Getting Paid?

As part of the $16.75 million restitution, eligible DoorDash drivers who worked in New York between 2017 and 2019 will receive compensation. They will be contacted by a settlement administrator with details.

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DoorDash, has since changed its pay model, and denied any wrongdoing.