NEW YORK — To settle claims that it unfairly used customer tips to lower the wages of its delivery workers in New York, Attorney General Letitia James said Monday that DoorDash will pay almost $17 million. The drivers should have been able to keep the tips on top of their promised pay.
James said that DoorDash used the wage plan from September 2018 to May 2017. The attorney general said that the company promised workers a base payment for each delivery, but that payment included tips and only paid workers for what the tips didn’t cover.
Democrats James and Smith said that DoorDash did not make it clear to buyers that tips were being used to pay workers less.
At a news gathering in Manhattan, she said, “This is not fair at all.” DoorDash customers had no reason to think that these tips were being used to cut costs.
The company is going to repay DoorDash drivers who did deliveries in New York between May 2017 and September 2019. They will get $16.75 million. A settlement supervisor will get in touch with workers who are eligible.
DoorDash said in a statement, “We believe that our practices accurately reflected how Dashers were paid during this time. We are pleased to have resolved this years-old matter and look forward to continuing to offer millions of people a flexible way to reach their financial goals.”
The business said that the old way of paying workers is no longer used.
