Company Used Tips to Subsidize Employees’ Pay
By CaraLynn Caulfield
Thousands of New York delivery workers could be eligible for payments from a $16.75 million settlement between DoorDash and the state—if they act before the September 30 deadline.
On July 8, Attorney General Letitia James issued a reminder urging current and former DoorDash workers (known as Dashers) to file claims if they’ve received notice of eligibility through email, text, or mail. The funds stem from a February 2025 settlement after an investigation by the Office of the Attorney General (OAG) found that DoorDash used customer tips to subsidize guaranteed pay for drivers between May 2017 and September 2019.
The AG’s office said the practice misled both customers and workers. According to investigators, Dashers were shown a guaranteed payout before accepting an order—but DoorDash would use tips to reduce its own contribution to that guaranteed amount, instead of adding tips on top of it. In many cases, customers were led to believe their tips went directly to Dashers, while in reality the company offset its costs using those funds.
“DoorDash misled customers who generously tipped and deceived Dashers who deserved to be paid in full,” James said in a statement. “This settlement returns millions to the pockets of hardworking Dashers and ensures transparency in DoorDash’s payment practices going forward.”
More than 60,000 New Yorkers who delivered for DoorDash during the covered period may be eligible for restitution. Claims must be submitted online through Atticus Administration, the independent administrator overseeing the distribution of funds.
In response to the renewed attention around the case, DoorDash emphasized that the settlement involved a retired pay model and that the company has made significant changes since 2019.
“We remain committed to making sure that Dasher earnings are always fair and transparent, and the allegations settled were related to an old pay model that was retired in 2019,” a DoorDash spokesperson said in a statement. “To be clear: Dashers always keep 100% of tips from orders on the DoorDash app.”
The company also noted that it has revised its policies to separate customer tips from base pay, increased transparency around earnings, and implemented a new rewards program aimed at helping Dashers meet their financial goals.
While DoorDash did not admit wrongdoing, the company said it was pleased to resolve the matter and continues to “listen to Dashers to create the best possible experience.”
The settlement also requires DoorDash to give Dashers access to order history for at least four years, and to clearly disclose pay breakdowns for each delivery.
Eligible Dashers should have received a notice from Atticus Administration with instructions on how to file. Claims must be submitted no later than September 30. For help, workers can call 1-800-270-1039 or email info@NYDoorDashSettlement.com. More details are available on the New York Attorney General’s website.