DoorDash has agreed to pay nearly $16.8 million in back wages following a New York state investigation into its tipping practices, the attorney general’s office announced. The probe found that between May 2017 and September 2019, the food delivery giant used workers’ tips to offset their base pay, rather than allowing them to receive the full amount.
Key Details of the Settlement
- Roughly 63,000 workers in New York will receive compensation as part of the settlement.
- The attorney general’s office accused DoorDash of misleading customers and underpaying workers by redirecting tips to meet guaranteed wages.
- DoorDash, which has previously denied wrongdoing, agreed to resolve the claims without admitting liability.
Ongoing Legal Battles for DoorDash
In addition to the New York wage settlement, DoorDash is currently facing accusations from Uber of anticompetitive practices in the white-label delivery market, further complicating the company’s legal landscape.
As regulators crack down on labor practices in the gig economy, the DoorDash settlement underscores the growing scrutiny over worker pay and transparency in the delivery industry.
