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The Independent UK
The Independent UK
National
Via AP news wire

DoorDash to pay NY delivery workers $17 million for using their tips to cover wages

DoorDash Letitia James New York
DoorDash Settlement New York - (Copyright 2020 The Associated Press. All rights reserved.)

The ubiquitous food delivery app 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, rather than letting drivers keep the tips on top of their guaranteed pay, Attorney General Letitia James said Monday.

James said DoorDash used the wage model between May 2017 and September 2019. The company would guarantee workers a base payment for each delivery but was factoring tips into that equation, only paying workers for whatever the tips didn't cover, according to the attorney general.

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