DoorDash to Pay $17 Million for Misusing Delivery Workers’ Tips in New York
DoorDash will pay $16.75 million to settle a lawsuit alleging that, between May 2017 and September 2019, the company improperly used customer tips to lower its own payments to New York delivery drivers. The Attorney General’s office claimed this practice was deceptive as it wasn’t disclosed to customers. This settlement provides restitution to affected workers, and DoorDash maintains that its past pay model was compliant, despite resolving the years-long legal dispute. The company has since abandoned this pay structure.
John Q. Hosedrinker