DoorDash has reached a $16.75 million settlement with the New York Attorney General regarding the company's previous practice of using customer tips to subsidize driver pay. Investigations revealed that from May 2017 to September 2019, the company misled customers by claiming that drivers would receive 100% of the tip. Instead, DoorDash used tips to cover guaranteed pay amounts. The settlement will benefit 63,000 drivers, with payments ranging from a few thousand dollars to as much as $14,000 for some. DoorDash ended these practices in 2019, following similar settlements in other states.
DoorDash misled customers who generously tipped and deceived Dashers who deserved to be paid in full. This settlement returns millions to the pockets of hardworking Dashers and ensures transparency in DoorDash's payment practices going forward.
During the two-year period, DoorDash promised Dashers a guaranteed pay for each delivery while misleading customers about how their tips were used.
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