DoorDash has agreed to pay $16.75 million to settle allegations by New York Attorney General Letitia James regarding its tipping practices. Between May 2017 and September 2019, DoorDash allegedly deducted tips from its delivery workers' wages, effectively using them to cover base pay instead of allowing drivers to keep tips in addition to guaranteed earnings. The settlement aims to reimburse affected workers while DoorDash maintains its pay model was fair. The company has since modified its payment approach, assuring consumers and drivers of clearer compensation policies.
This is just fundamentally unfair. Customers had no reason to believe that these tips were being used by DoorDash to reduce its costs.
DoorDash said, 'While we believe that our practices properly represented how Dashers were paid during this period, we are pleased to have resolved this years-old matter and look forward to continuing to offer a flexible way for millions of people to reach their financial goals.'
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