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DoorDash to pay NY delivery workers $17 million for using their tips to cover wages

DoorDash will pay a $16.75 million settlement due to an investigation into its tipping practices, as stated by New York Attorney General Letitia James.
About 60,000 delivery workers, known as 'Dashers,' will receive between $10,000 and $14,000 each from the settlement.
DoorDash must end the tip-sharing practice and report to the AG's office every six months for compliance over the next three years.
The deceptive policy allowed DoorDash to use tips to offset wages, keeping Dashers and customers unaware, according to James.

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The Verge

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DoorDash is paying restitution after keeping tips from as many as 63,000 of its New York delivery workers thanks to a settlement with the New York Attorney General’s office, The New York Times reports. Attorney General Letitia James announced on Monday that DoorDash will pay $16.8 million, which will be spread across workers who were subjected to the company’s “guaranteed pay” model that subsidized payments against customer tips. DoorDash will a…

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DoorDash to pay for tips taken from delivery workers

The food delivery company DoorDash will have to pay its employees $16.75 million to settle a lawsuit that accused it of helping itself to the tips customers gave to delivery workers.New York State Attorney General Letitia James, announced on Feb. 24 that an investigation by her office found that between May 2017 and September 2019, DoorDash used funds from customer tips to help pay the wages it owed to delivery workers. She characterized DoorDas…

4 days ago

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