DoorDash, a major player in the food delivery market, implemented a controversial system of withholding customer tips from delivery workers known as Dashers, which lasted over two years. This practice was kept hidden from customers and workers alike, causing considerable backlash. Following a public outcry, DoorDash ceased this practice in 2019, but the funds withheld remained a contentious issue. Recently, the New York attorney general announced that DoorDash is required to pay $16.8 million in restitution to approximately 63,000 Dashers, some of whom may receive up to $14,000 each.
In a controversial practice that lasted over two years, DoorDash withheld customer tips meant for workers, effectively keeping the funds to reduce its delivery costs.
The New York attorney general announced DoorDash would pay $16.8 million in restitution to affected Dashers, highlighting the company's hidden practices regarding tip distribution.
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