DoorDash has agreed to pay $16.75 million to settle a lawsuit by New York’s attorney general that accused the delivery platform of pocketing workers’ tips to cover wages.
The lawsuit alleged that between May 2017 and September 2019, DoorDash used customer tips to offset the base pay it had already guaranteed to workers, instead of giving workers the full tips they received. The lawsuit stated that customers were also misled into believing their tips would directly benefit delivery workers.
Around 63,000 New York DoorDash delivery workers stand to benefit from the settlement.
“We remain committed to making sure that Dasher earnings are always fair and transparent, and the allegations settled were related to an old pay model that was retired in 2019,” DoorDash said in a statement to TechCrunch.
