Doordash will pay $17m to workers in New York after scammy tip scheme uncovered by officials

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Doordash is forking over millions of dollars to workers in New York after  it was found that the company committed  betrayal against its own.

The Lowdown

Doordashers in New York can once again count on New York to protect their right to fair pay.  According to reports, the Attorney General Letitia James has secured a  $17m judgement against Doordash against claims that it scammed workers out of tips (and then used their tips to cover their guaranteed pay instead.)

In the original suit,  James collared Doordash for  the use of a wage model between 2017 and September 2019 that should have never been. In that model,  tips meant for workers (keep in mind Doordash tells customers they get 100% of tips all the time)  were actually used to pay workers guaranteed pay.  In New York City, workers are guaranteed a set pay per state law.

In the end, thousands of people only got paid for whatever their tips didn’t cover during this time per the suit filed by officials.

James took to X to discuss the situation and the verdict against Doordash.  Estimates place that some 63,000 workers  may be eligible for some of the monies involved.  According to the New York Times, settlement administrators are going to reach out to those who are found to be eligible.

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