Doordash to pay millions to drivers after the company has collapsed tips

New York's top prosecutor announced an agreement of almost 17 million US dollars on Monday on Monday to “mislead both consumers and delivery members” by using tips for his drivers to pay their payment subsidize.

The online delivery platform, headquartered in San Francisco, used the wage model between May 2017 and September 2019 to exploit the drivers' tips according to the court files submitted in this case.

The New York Attorney General Letitia James said that an investigation by Doordash's investigation was misleading in the pockets for his drivers who have described tips, which have described tips for his drivers, and the funds for the basic payment of the driver Added were added instead of making the full tips available to you.

“This is fundamentally unfair,” said James during a press conference in Manhattan. “Customers had no reason to assume that these tips were used by Doordash to reduce their costs … They knew that it wasn't right and they did it anyway.”

Doordash replies

On Tuesday, a Doordash spokesman told USA Today, the company “remains obliged to ensure that the income is always fair and transparent”.

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“The enclosed allegations based on an old wage model that was retired in 2019,” said the spokesman. “While we believe that our practices were correctly presented during this period, as they were paid for during this period, we are happy to have solved the matter of these years and look forward to continuing to offer millions of people a flexible way to offer, to achieve their financial goals. “

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“Department members are an essential part of our communities”

As part of the settlement, Doordash will now provide “an accessible disclosure, in which the disclosures that will see in its mobile application will be explained before he accepts a delivery list”.

“Department members are an integral part of our communities and work tirelessly to bring food and other important essentials directly under all conditions right on our doorstep,” said James. “This settlement returns millions in the pockets diligently and ensures transparency in Doordash's payment practices in the future.”

“We have your back”: How to submit a claim in the New York Doorash settlement

In the coming weeks, James said her office would provide information on how justified delivery workers can submit a claim to money from the settlement.

James said an administrator would set up a website regarding the claim.

“If you were a dasher or deliverer in New York between 2017 and 2019, you may be entitled to reimbursement. I ask you all to submit a claim,” said James. “We have your back.”

Natalie Neysa Alund is a senior reporter for USA Today. Reach it at nalund@usatoday.com and follow it on X @Nataliealund.

Doordash to pay millions to drivers after the company has collapsed tips

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