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DoorDash has agreed to a nearly $17 million settlement following accusations that it misled both customers and delivery workers by using tips meant for drivers, known as Dashers, to subsidize their base pay. This practice was in place from May 2017 to September 2019, according to a case filed by New York Attorney General Letitia James.
James announced the settlement on Monday (February 24), stating that DoorDash's actions were "fundamentally unfair." She explained that customers were unaware their tips were being used to offset DoorDash's costs rather than going directly to the Dashers.
In response, a DoorDash spokesperson told USA TODAY that the allegations were related to an old pay model retired in 2019. The company expressed satisfaction in resolving the matter and emphasized its commitment to fair and transparent Dasher earnings
Under the terms of the settlement, DoorDash will provide Dashers with clear disclosures in their mobile application before accepting delivery orders. This aims to ensure transparency in payment practices moving forward.
James highlighted the importance of delivery workers, stating, "This settlement returns millions to the pockets of hardworking Dashers and ensures transparency in DoorDash’s payment practices going forward." She also announced that her office would soon provide information on how eligible delivery workers can file claims to receive money from the settlement.
Dashers who worked in New York between 2017 and 2019 are encouraged to file a claim for restitution. James assured, "We have your back."