DoorDash has agreed to a $17 million settlement following claims that the company misused drivers’ tips. According to the lawsuit, the food delivery platform allegedly used customer tips to offset workers’ base pay rather than providing them with the full amount.
The settlement resolves allegations that DoorDash engaged in deceptive tipping practices between 2017 and 2019. Under the company’s previous pay model, tips did not always go directly to drivers, instead reducing the amount DoorDash was required to pay as base compensation.
As part of the agreement, affected drivers will receive compensation, with the majority of funds being distributed to those who worked for DoorDash during the impacted period. The company has since revised its tipping policy, ensuring that tips go directly to workers.
This settlement follows increased scrutiny of gig economy companies over their pay structures and transparency in worker compensation.
