DoorDash has agreed to pay nearly $17 million to settle allegations from New York Attorney General Letitia James that it improperly used customer tips to subsidize driver wages. Between May 2017 and September 2019, the company factored tips into a guaranteed base pay structure, effectively reducing actual earnings for delivery workers. The settlement includes $16.75 million in restitution for eligible drivers and marks a change in DoorDash's compensation policies, following criticism for lack of transparency with customers regarding how tips were utilized.
This is just fundamentally unfair, customers had no reason to believe that these tips were being used by DoorDash to reduce its costs.
DoorDash will pay $16.75 million in restitution that will be distributed to DoorDash workers who made deliveries between May 2017 and September 2019 in New York.
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