Attorney General Letitia James announced a significant $16.75 million settlement with DoorDash, arising from claims that the company appropriated customer tips intended for delivery workers. Between May 2017 and September 2019, DoorDash allegedly used a payment model that added tips to base pay, misleading workers and customers about the actual compensation received. As part of the settlement, DoorDash must now ensure full distribution of customer tips to workers, affirming the right of Dashers to receive all earnings. James emphasized the importance of protecting workers' rights against such deceptive practices.
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.
The AG's office found that DoorDash used customer tips to offset the base pay it had already promised workers, instead of giving them the full tips they earned.
Collection
[
|
...
]