DoorDash has been ordered to pay $16.8M to NY couriers for tip misuse. Learn how this settlement impacts drivers and the company's policies.

A $16.75 million settlement with DoorDash for misleading both consumers and delivery workers on how tips were being distributed.

Listen to this article The office of New York Attorney General Letitia James has announced a $16.75 million settlement with DoorDash after the delivery company used drivers’ tips to subsidize […]

New York AG Letitia James announced she secured $16.75 million in reimbursement for DoorDash employees after an investigation into wage theft.

The office of New York Attorney General Letitia James has announced a $16.75 million settlement with DoorDash after the delivery company used drivers’ tips to subsidize their guaranteed pay, according to the AG’s office.

DoorDash has reached an agreement with the New York Attorney General over an old practice wherein the company used customers' tips to subsidize its drivers' pay. As the office of New York AG Letitia James explained,

DoorDash will pay nearly $17 million in a settlement after the food delivery platform used customer tips to subsidize the wages of New York delivery workers.

The payments, part of a settlement with the New York attorney general’s office over a practice that ended in 2019, will return as much as $14,000 to some workers.

But instead of paying that guarantee and letting drivers keep their tips, DoorDash counted the tip toward their base pay and kept what was left. Let’s say a driver is guaranteed $10 on a delivery. DoorDash would pay a minimum of $1 of that no matter what,