Attorney General Letitia James unveiled on Monday a massive DoorDash settlement resulting from an alleged tip scheme that led to wages stolen from delivery workers.
According to James, the food delivery company misled customers by pocketing tips intended for the delivery workers racing around the city and added those funds to the base pay, which was already meant to have been guaranteed to the worker. Between May 2017 and September 2019, the AG’s office said, DoorDash used a guaranteed pay model that let Dashers see how much they would be paid before accepting a delivery. An Attorney General investigation found that DoorDash used customer tips to offset the base pay it had already promised workers, instead of giving them the full tips they earned.
