DoorDash will pay $16.8 million to New York delivery workers after a state probe found it used customer tips to offset guaranteed pay between 2017 and 2019.
The company used customer tips to cover base pay instead of adding them to workers’ earnings. For instance, if a driver’s guaranteed pay was $10 and a customer tipped $3, DoorDash paid only $7 instead of adding the tip on top.
The practice sparked outrage and ended in 2019, but workers never got their lost money back. During the affected period, New Yorkers placed more than 11 million orders through DoorDash.
Now, more than 63,000 Dashers are eligible for compensation, with payments ranging from a few hundred dollars to as much as $14,000.
DoorDash previously settled similar cases, paying $2.5 million in Washington, D.C., in 2020 and $11.25 million in Illinois in 2024.
Since 2023, NYC delivery workers have had a minimum wage of $19.56 per hour, plus tips.