DoorDash to Pay $16.8 Million to Workers for Pocketing Their Tips

DoorDash, the popular food delivery service, has agreed to pay $16.8 million to workers for allegedly pocketing their tips. The settlement, announced by the District of Columbia Attorney General’s office, resolves a lawsuit that accused DoorDash of deceptive practices when it came to how tips were allocated to delivery workers.

The lawsuit, filed in November 2019, alleged that DoorDash misled customers by leading them to believe that their tips were going directly to the delivery workers. In reality, DoorDash used the tips to subsidize the workers’ base pay, effectively reducing the amount of money that the company had to pay out of its own pocket.

As part of the settlement, DoorDash has agreed to pay $1.5 million to the District of Columbia and $15.3 million to eligible delivery workers who were affected by the deceptive tip practices. Additionally, DoorDash has agreed to make changes to its tipping policy to ensure that workers receive 100% of tips given by customers.

This settlement is a major victory for gig economy workers who rely on tips as a significant portion of their income. It sends a clear message to companies like DoorDash that deceptive practices will not be tolerated and that workers deserve to be fairly compensated for their work.

DoorDash has issued a statement acknowledging the settlement and expressing its commitment to ensuring that delivery workers are treated fairly. The company stated that it has already made changes to its tipping policy to ensure that workers receive 100% of tips going forward.

Overall, this settlement is a positive step towards holding companies accountable for their treatment of workers in the gig economy. It serves as a reminder that workers have rights and deserve to be fairly compensated for their labor. Hopefully, this will set a precedent for other companies in the gig economy to ensure that their workers are treated with the respect and fairness they deserve.