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.
DoorDash will pay almost $17 million to settle claims it unfairly used tips to subsidize delivery workers' wages in New York.
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.
A New York probe found DoorDash secretly used tips to offset delivery worker salaries, New York Attorney General Letitia James said.
DoorDash used customer tips to pay workers’ wages, but it must give that money back.
The city's top prosecutor said if you were a DoorDash delivery worker in New York between 2017 and 2019 you may be entitled to restitution.
DoorDash will pay almost $17 million to settle claims that it unfairly used customer tips to subsidize the wages of its delivery workers in New York.
"Customers were misled into believing their tips would directly benefit Dashers," the attorney general's office said in a news release.
This is just fundamentally unfair,” New York Attorney General Letitia James said during a recent news conference
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,
New Yorkers placed more than 11 million delivery orders with DoorDash during that period, James said, adding that about 63,000 New York delivery workers are expected to benefit from the settlement. In resolving the probe,
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