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.
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,
DoorDash will pay almost $17 million to settle claims it unfairly used tips to subsidize delivery workers' wages in New York.
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.
DoorDash employees after an investigation into wage theft for delivery drivers. James said DoorDash used a guaranteed pay model between May 2017 and September 2019 that allowed delivery drivers,
"Customers were misled into believing their tips would directly benefit Dashers," the attorney general's office said in a news release.
This is just fundamentally unfair,” New York Attorney General Letitia James said during a recent news conference
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.
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
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.