DoorDash, a popular food-delivery app, has agreed to pay $16.8 million in restitution to its workers, also known as Dashers, over the company’s long-standing practice of keeping tips for itself. The settlement follows an investigation by New York’s Attorney General office.
For more than two years, DoorDash withheld tips from Dashers, paying them only a guaranteed minimum amount and adding the tip on top. This meant that even if customers tipped, the company kept most of the money. The practice was criticized for being unfair to workers.
DoorDash ultimately changed its policy in 2019, but many Dashers were still owed money. The company has also agreed to similar settlements in Washington, D.C., and Illinois.
Under New York law, Dashers are now entitled to a minimum wage of $19.56 per hour, plus tips, for work related to delivery. Los Deliveristas Unidos, a labor advocacy group, welcomed the settlement, calling it “victory” for workers.
DoorDash claims to be pleased with the resolution and looks forward to continuing its services. However, it’s unclear how much of the restitution will go directly to Dashers. A state administrator will contact those eligible to claim their share.
Source: https://www.nytimes.com/2025/02/24/nyregion/new-york-doordash-tip-settlement.html