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DoorDash to pay nearly $17M to delivery drivers to settle pay dispute

  • DoorDash will pay $16.75 million to settle a lawsuit over the use of worker's tips to subsidize base pay.
  • From May 2017 to September 2019, DoorDash kept customers unaware that the 'tip' added to the delivery charge was not separate from guaranteed base income of delivery workers.
  • The settlement will be distributed to about 63,000 delivery workers in New York who worked for DoorDash during that period.
  • DoorDash agreed to adopt a new pay model that ensures workers receive tips in addition to their guaranteed pay and to provide transparency in pay policy details.

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