DoorDash has agreed to pay $16.75 million to settle an investigation into its misleading tipping practices, impacting around 60,000 delivery workers. According to New York Attorney General Letitia James, DoorDash used customer tips to reduce its payment to delivery drivers, thereby misrepresenting how their tips were utilized. This settlement will result in payouts of $10,000 to $14,000 per Dasher. Additionally, DoorDash will cease its tip-offsetting practice and improve transparency around how tips are processed, with a reporting obligation for the next three years.
Some 60,000 DoorDash delivery workers will split a $16.75 million settlement, corresponding to deceptive tipping practices that misled both customers and drivers.
DoorDash executives knew how deceptive this policy was. They knew it wasn't right but they did it anyway, as reported by AG Letitia James.
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