DoorDash has agreed to pay a total of $16.8 million to restitution for misleadingly using delivery worker tips as part of their 'guaranteed pay' model, which compromised fair compensation. Attorney General Letitia James confirmed this settlement after it was revealed that from May 2017 to September 2019, DoorDash guaranteed certain earnings to workers while simultaneously keeping their tips. This comes after similar settlements in Illinois and Washington DC, reflecting ongoing scrutiny of gig economy labor practices.
From May 2017 through September 2019, DoorDash's payment model would 'guarantee' a certain payout to workers whether customers tipped or not. However, what the company didn't make clear was that it was really giving a base pay of $1.
DoorDash also made similar settlements with Illinois for $11.3 million in November and with Washington DC for $2.5 million in 2020.
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