DoorDash will pay $16.8 million to New York delivery workers after misusing their tips

Food delivery platform DoorDash has agreed to pay $16.8 min res t i t u t i o n t oso m e 63, 000 w or k ers in N e w Y or k w h o d i d n o t rece i v e f u ll c u s t o m er t i p s b e tw ee n M a y 2017 an d S e pt e mb er 2019, w h e n t h eco m p an y w a s gu a r an t ee in g w or k ers aba se p a yo f$ 1 and using customer tips to top up payments.
The company had changed its tipping policy following criticism in 2019.
Attorney General Letitia James claimed the model was “deceitful to workers” and that the company had buried within the ordering process how tips were truly distributed.
DoorDash has settled similar cases in Illinois ( $11.3 m) an d Wa s hin g t o n D C ($ 2.5m).
During the pandemic, DoorDash was also sued by the city of Chicago over unfair fees and tipping policies, a case that is still ongoing.

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