New York Attorney General Letitia James has secured a $16.75 million settlement with food delivery company DoorDash. The lawsuit found that DoorDash misled consumers and its delivery workers, known as “dashers,” by using customer tips to subsidize the dasher’s guaranteed pay.
Under DoorDash’s guaranteed pay model, workers could only see their tips if they were greater than the amount already guaranteed for the order. This meant that even when customers tipped generously, Dashers received a fixed $10, with any remaining tip going to DoorDash.
The settlement returns millions of dollars to the pockets of hardworking Dashers and ensures transparency in DoorDash’s payment practices going forward. DoorDash will pay Dashers $16.75 million in restitution and up to $1 million in administration costs.
Source: https://www.wbng.com/2025/02/24/attorney-general-james-secures-1675m-lawsuit-settlement-with-doordash