💸 The $17M Settlement
DoorDash will pay $17M to settle claims that it misused tips. From 2017 to 2019, tips were used to offset driver wages. New York’s AG Letitia James called the practice "fundamentally unfair." Customers were unaware their tips weren’t going directly to drivers.
📢 What DoorDash Says
DoorDash insists it was transparent about the pay model. The company says it changed the model in 2019. A spokesperson said the issue was "years old" and resolved. DoorDash claims it remains committed to fair and transparent earnings.
🚗 What This Means for Dashers
Eligible Dashers in New York can claim part of the $17M. The state will provide details on how to apply soon. The settlement ensures more pay transparency moving forward. New rules require clearer disclosures for drivers in the app.
📜 The Bigger Picture
This case highlights concerns about gig economy pay practices. Delivery workers play a key role but often face pay disputes. Regulators are pushing for better protections. Expect more scrutiny on gig companies' payment models.
Do gig workers need stronger pay protections?
