DoorDash to pay delivery workers nearly $17M for using tips to cover wages

Summary of Key Points Core Perspective - DoorDash has agreed to pay $16.75 million to settle a lawsuit alleging that it improperly used customer tips to cover workers' wages, misleading customers about the benefits of their tips to delivery workers [1]. Group 1: Legal Settlement - The settlement amount is$16.75 million, which will benefit approximately 63,000 DoorDash delivery workers in New York [2]. - The lawsuit claimed that from May 2017 to September 2019, DoorDash used customer tips to offset guaranteed base pay instead of providing the full tips to workers [1]. Group 2: Company Response - DoorDash stated its commitment to ensuring fair and transparent earnings for delivery workers, noting that the allegations pertained to an outdated pay model that was retired in 2019 [2].