DoorDash has agreed to pay nearly $17 million to settle claims that it misused customer tips to offset wages for delivery workers in New York, according to Attorney General Letitia James. From May 2017 to September 2019, the company allegedly incorporated tips into its base pay calculations, rather than allowing workers to receive them in addition to their earnings.
James criticized the practice as misleading, noting that customers were unaware their tips were being used to lower DoorDash’s costs. As part of the settlement, $16.75 million will be distributed to affected workers.
DoorDash stated that it believes its previous pay model was fair but has since changed its approach. The company said it remains committed to providing flexible earning opportunities.
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