Delivery workers in New York City will recoup $17 million from DoorDash after an investigation revealed that the online food delivery company had shorted more than 60,000 workers on customer tips over a two-year period, Attorney General Letitia James said in announcing a settlement with the platform Monday.
Between May 2017 and September 2019, officials from the AG's office said, DoorDash used tips paid by customers to subsidize workers’ guaranteed minimum pay rather than give the delivery workers their tips in addition to their pay. The scheme, which James on Monday called a “bait and switch” and “betrayal of trust,” saw DoorDash use customer tips to cover much — or all — of what else the company had implied it would itself pay the workers without making it clear to customers that it was doing so.
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