As Attorney General James stated, the settlement resulted from DoorDash misleading consumers and its delivery workers, known as “dashers,” by using the tips intended for them to subsidize the dasher’s guaranteed pay.

New York Attorney General Letitia James on Monday announced a $16.8 million settlement between DoorDash and its delivery drivers to recoup tips. NewsdayTV's Ken Buffa reports.

But instead of paying that guarantee and letting drivers keep their tips, DoorDash counted the tip toward their base pay and kept what was left. Let’s say a driver is guaranteed $10 on a delivery. DoorDash would pay a minimum of $1 of that no matter what,

The New York attorney general’s office announced a $17 million DoorDash settlement after the delivery platform used tips intended for drivers to subsidize their pay.

An investigation found the firm used customer tips to subsidize delivery workers’ wages between 2017 and 2019. More than 60,000 may be eligible for the payout.

DoorDash settles with New York AG for $16.75M after an investigation revealed tips were not fully passed to workers but used to cover guaranteed pay. Advancements in transparency and pay practices are mandated.

DoorDash has agreed to pay $16.75 million to settle a lawsuit by New York's attorney general accusing it of pocketing customers' tips for delivery drivers while misleading both customers and drivers about the practice,

The payments, part of a settlement with the New York attorney general’s office over a practice that ended in 2019, will return as much as $14,000 to some workers.

DoorDash will pay almost $17 million to settle claims that it unfairly used customer tips to subsidize the wages of its delivery workers in New York.