The New York attorney general’s office announced a $17 million DoorDash settlement after the delivery platform used tips intended for drivers to subsidize their pay.
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The New York attorney general’s office announced a nearly $17 million DoorDash settlement after the delivery platform used tips intended for drivers to subsidize their pay.
On Feb. 24, New York Attorney General Letitia James said in a press release that between May 2017 and September 2019, an Office of the Attorney General (OAG) investigation found that the delivery platform “used customer tips to offset the base pay it had already guaranteed to workers, instead of giving workers the full tips they rightfully earned.”
AGJamessaidthatcustomersweremisledintothinkingtheirtipswouldbedirectlygiventodeliveryworkers,akaDashers.Instead,DoorDashwouldkeepthetipsandtakeitoutoftheirguaranteedpay.
Inturn,DoorDashwillpay$16.75millioninrestitutionforDashersandupto$1millioninsettlementadministratorcoststohelpissuethepayments.
WhatdidDoorDashsay?InastatementtoTODAY.com,aDoorDashspokespersonsaysitremainscommittedtomakingsureDashers
