New York Attorney General Letitia James announced that DoorDash will pay nearly $17 million to settle claims it shorted thousands of delivery workers out of tip money paid by customers. The settlement affects approximately 63,000 delivery workers who worked for DoorDash in New York state between May 2017 and September 2019.
Under the agreement, eligible drivers will receive payouts ranging from $10 to $14,000. James said the settlement will “go a long way toward addressing the suffering” of delivery workers, whose families have been affected by what she called DoorDash’s “deceptive” pay practices.
The company operated a “guaranteed” wage system, where it would promise to pay a certain amount to each worker, but only paid them whatever the tip did not cover. This meant that if customers didn’t tip enough, workers were left with less than the guaranteed amount. James said this practice was “fundamentally unfair.”
The settlement is part of larger efforts by New York’s Attorney General office to recover money owed to delivery workers. In December, the office recovered $4 million in withheld tips from former Drizly workers, and in November 2023, it recovered $328 million for Uber and Lyft drivers.
Ligia Guallpa, executive director of the Worker’s Justice Project, hailed the settlement as a “major victory” for delivery workers. The agreement is expected to put money into the pockets of hardworking drivers who were unfairly denied tips by DoorDash.
Source: https://gothamist.com/news/ny-doordash-deliverers-allegedly-stiffed-on-tips-to-share-17m-settlement