What was the nature of DoorDash's deceptive tipping practices?

DoorDash used customer tips to offset the guaranteed wages of its delivery workers, misleading both customers and workers. If a customer tipped, DoorDash would use that tip to reduce its own contribution to the worker's guaranteed pay.

How many delivery workers will benefit from the settlement?

Approximately 60,000 delivery workers will benefit from the settlement, with each eligible worker receiving between $10,000 and $14,000.

What changes will DoorDash implement following the settlement?

DoorDash must end the practice of using tips to offset guaranteed pay, ensure full disclosure of its pay policies to both workers and customers, and provide workers with detailed breakdowns of their earnings.

When did DoorDash stop using the deceptive tipping practice?

DoorDash stopped using the deceptive tipping practice in September 2019.

3 sources·Business

DoorDash Settles for $17 Million Over Tipping Practices in New York

DoorDash agrees to pay $17 million to New York delivery workers after unfairly using customer tips to cover wages from 2017 to 2019.

67%

33%

The distribution of story sources: left-leaning (blue), center (light gray), and right-leaning (red).

Mostly Reliable

The underlying sources are generally reliable but sometimes include opinion, propaganda, or minor inaccuracies.

Balanced

The underlying sources are either a balanced mix of left and right or primarily centrist.

The company will pay $16.75 million in restitution that will be distributed to DoorDash workers who made deliveries between May 2017 and September 2019 in New York.
DoorDash to pay NY delivery workers $17M for using their tips to cover wages
New York Post·23d
Mostly Reliable
This source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.
·
Leans Right
This outlet slightly leans right.
DoorDash used tips to offset driver salaries, deceiving customers and workers, AG Letitia James said.
More than 60,000 DoorDash delivery workers will share the company's $16.75 million settlement, New York AG says
Business Insider·23d
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
·
Center
This outlet is balanced or reflects centrist views.
This is just fundamentally unfair.
DoorDash to pay NY delivery workers $17 million for using their tips to cover wages
ABC News·23d
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
·
Center
This outlet is balanced or reflects centrist views.

Feb 24th, 2025, 7:57 PM ET

Summary

A summary of the key points of this story verified across multiple sources.

DoorDash will pay $16.75 million to settle allegations in New York that it illegally used customer tips to cover minimum wages for delivery workers from May 2017 to September 2019. New York Attorney General Letitia James announced that approximately 60,000 delivery workers will be compensated, with each eligible worker receiving between $10 and $14,000, depending on the delivery hours. The settlement mandates greater transparency in DoorDash's tipping practices moving forward, and the company claims the outdated pay model has been retired since 2019.

Perspectives

Compare opinions on this story from liberal (Left), conservative (Right) or center-leaning news organizations.

No center-leaning sources available for this story.

FAQs

A list of follow-up questions readers often ask about this story.