DoorDash to repay $16.75m in pocketed tips to New York delivery workers

guardian.co.uk (nprofile…z4y7)
✍️ DoorDash pays $16.75m to settle investigation over using customer tips to subsidize workers' base pay.
👉 DoorDash used customer tips to subsidize workers' base pay
👉 The company used a guaranteed pay model between 2017 and 2019
👉 Workers were only able to see tips if they were greater than the base pay guaranteed by the app
👉 The settlement includes $16.75m in restitution for workers and up to $1m in settlement administrator costs

#LetitiaJames #LeeVaughn #NewYork #WashingtonDC #Illinois #business

quoting nevent1q…4q5x

guardian.co.uk (nprofile…z4y7)

Delivery app claimed that 100% of tips went to ‘dashers’ but instead used them to subsidize workers’ base salaryThe delivery platform DoorDash is paying $16.75m to settle an investigation conducted by New York authorities that charged the company with using tips from customers to subsidize workers’ base pay.Between May 2017 and September 2019, DoorDash used a guaranteed pay model to show delivery workers how much they would make before accepting a delivery. The investigation by the New York attorney general, Letitia James, found that under this model DoorDash used tips from customers to offset the base pay it guaranteed to workers rather than giving them the full tips. Continue reading...
https://www.theguardian.com/us-news/2025/feb/27/doordash-new-york-tips-delivery-workers