DoorDash will pay nearly $17 million to settle allegations of unfairly using customer tips to subsidize delivery workers’ wages in New York.
New York Attorney General Letitia James stated that from May 2017 to September 2019, DoorDash guaranteed base payments for deliveries but factored in tips, only paying workers the difference.
The company also failed to inform customers that their tips were used to offset wages.
The settlement includes $16.75 million in restitution for eligible workers during that period, who will be contacted by a settlement administrator.
WDKX Holiday Stream