DoorDash has reached a $16.75 million settlement in a lawsuit led by New York's attorney general, who accused the company of improperly using customer tips to subsidize worker wages from May 2017 to September 2019. This practice misled customers into thinking their tips would fully benefit delivery workers. The settlement is expected to impact approximately 63,000 delivery workers in New York. DoorDash claims the issues stemmed from an outdated pay model that has since been discontinued, asserting its commitment to fair earnings for workers.
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 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.
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