DoorDash will pay almost $17 million to settle claims it unfairly used tips to subsidize delivery workers' wages in New York.
Food delivery app DoorDash will have to pay New York-based workers nearly $17 million for unfairly using customer tips to cover its workers’ wages, rather than letting drivers keep tips in addition to their set pay,
"Customers were misled into believing their tips would directly benefit Dashers," the attorney general's office said in a news release.
New York Attorney General Letitia James just made DoorDash cough up $16.75 million for stealing drivers' tip, reports Courthouse News. Here's how these sneaky bastards pulled it off: Let's say a driver was guaranteed $10 for schlepping your pad thai across town.
New York AG Letitia James announced she secured $16.75 million in reimbursement for DoorDash employees after an investigation into wage theft.
DoorDash will pay nearly $17 million in a settlement after the food delivery platform used customer tips to subsidize the wages of New York delivery workers.
After an investigation into the possible misuse of gratuity, New York Attorney General Letitia James announced Monday DoorDash is required to pay over $16 million in restitution to its delivery workers, also known as Dashers, and up to $1 million in settlement administrator fees for misleading its customers and Dashers.
As Attorney General James stated, the settlement resulted from DoorDash misleading consumers and its delivery workers, known as “dashers,” by using the tips intended for them
This is just fundamentally unfair,” New York Attorney General Letitia James said during a recent news conference
New York Attorney General Letitia James customers were unaware their tips were being used to offset DoorDash's costs rather than going directly to the Dashers.
A New York probe found DoorDash secretly used tips to offset delivery worker salaries, New York Attorney General Letitia James said.
DoorDash will pay almost $17 million to settle claims that it unfairly used customer tips to subsidize the wages of its delivery workers in New York.