The ubiquitous food delivery app DoorDash will pay almost $17 million to settle claims that it unfairly used customer tips to subsidize the wages of its delivery workers in New York, rather than letting drivers keep the tips on top of their guaranteed pay,

DoorDash has been ordered to pay $16.8M to NY couriers for tip misuse. Learn how this settlement impacts drivers and the company's policies.

In a victory for labor rights, the food delivery app DoorDash has been ordered to pay nearly $17 million for secretly using customer tips to subsidize the wages of its delivery workers in New York, instead of allowing them to keep their tips on top of their guaranteed wages.

DoorDash settles with New York AG for $16.75M after an investigation revealed tips were not fully passed to workers but used to cover guaranteed pay. Advancements in transparency and pay practices are mandated.

A $16.75 million settlement with DoorDash for misleading both consumers and delivery workers on how tips were being distributed.

DoorDash has reached an agreement with the New York Attorney General over an old practice wherein the company used customers' tips to subsidize its drivers' pay. As the office of New York AG Letitia James explained,

DoorDash will pay nearly $17 million in a settlement after the food delivery platform used customer tips to subsidize the wages of New York delivery workers.

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But instead of paying that guarantee and letting drivers keep their tips, DoorDash counted the tip toward their base pay and kept what was left. Let’s say a driver is guaranteed $10 on a delivery. DoorDash would pay a minimum of $1 of that no matter what,