DoorDash to Pay $16.75M Settlement Over Misleading Tipping Practices

The settlement compensates 63,000 New York delivery workers after tips were used to subsidize wages between 2017 and 2019.

DoorDash will pay $16.75 million to New York delivery workers after an investigation revealed tips were used to offset guaranteed wages instead of being paid in full to drivers.
Around 63,000 eligible Dashers who worked between May 2017 and September 2019 will receive payments, with some payouts reaching up to $14,000.
Customers were misled by messages stating that Dashers would receive 100% of tips, while the company used those tips to reduce its own wage costs.
The tipping practice ended in 2019, and DoorDash has since revised its payment model to ensure tips are paid in full to workers on top of their base pay.
As part of the settlement, DoorDash will enhance transparency in its pay practices, including detailed breakdowns of base pay, bonuses, and tips for drivers.