DoorDash Paying Drivers $17M for Stolen Tips

DoorDash drivers in New York are about to get an extra tip—and one that they’ve been owed for over half a decade. As part of a settlement announced by the state of New York’s Attorney General, Letitia James, DoorDash has agreed to pay $16.75 million to more than 60,000 Dashers who were supposed to receive that money in the form of tips but instead, the company used it to cover base pay and pocketed the rest. New York’s lawsuit alleged that between May 2017 and September 2019, tens of thousands of Dashers were misled by DoorDash’s pay model. At the time, the company offered a guaranteed wage to drivers—the minimum amount that they could expect to make from a job. But instead of paying that guarantee and letting drivers keep their tips, DoorDash counted the tip toward their base pay and kept what was left. Let’s say a driver is guaranteed $10 on a delivery. DoorDash would pay a minimum of $1 of that no matter what, but the rest would scale based on how the person who placed the order t ... Read full article.