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DoorDash to pay almost $17 million to settle New York worker tips caseDoorDash to pay almost $17 million to settle New York worker tips case

A similar case was settled earlier this year for Uber and Lyft drivers

Joanna Fantozzi, Senior Editor

February 26, 2025

2 Min Read
DoorDash-delivery-driver
DoorDash was accused of deceptive payment practices. DoorDash

DoorDash is set to pay $16.75 million in workers’ restitution and up to $1 million in administrative fees, following a legal settlement with the state of New York over owed gratuities to New York Dashers.

According to New York State Attorney General Letitia James, the third-party delivery company is accused of using tips intended for contracted delivery workers to subsidize their guaranteed pay.

The attorney general’s office found that between May 2017 and September 2019, DoorDash engaged in a “deceptive pay model” that let Dashers view how much they would be paid before accepting a delivery. Under this model, James said DoorDash used Dasher tips to offset the base pay guaranteed to workers, stating that DoorDash would also pay the minimum of $1 to the Dasher and then offset the rest of the amount with tips from customers.

“Delivery workers are integral to our communities, working tirelessly to bring food and other essentials directly to our doorsteps in all conditions,” James in a statement. “DoorDash misled customers who generously tipped and deceived Dashers who deserved to be paid in full. This settlement returns millions to the pockets of hardworking Dashers and ensures transparency in DoorDash’s payment practices going forward.”

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The New York Attorney General’s office announced a similar settlement with Uber and Lyft last month, in which James secured $328 million in back payments for New York Uber and Lyft drivers who were withheld payments and benefits from the rideshare companies.

This pay discrepancy is a result of a DoorDash pay model that is no longer in use. Currently, Dashers earn a guaranteed base pay (based on the estimated time, distance, and desirability of the order) with tips on top of that.

“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. While we believe that our practices properly represented how Dashers were paid during this period, we are pleased to have resolved this years-old matter and look forward to continuing to offer a flexible way for millions of people to reach their financial goals.”

Contact Joanna at [email protected]

About the Author

Joanna Fantozzi

Senior Editor

Joanna Fantozzi is a Senior Editor for Nation’s Restaurant News and Restaurant Hospitality. She has more than seven years of experience writing about the restaurant and hospitality industry. Her editorial coverage ranges from profiles of independent restaurants around the country to breaking news and insights into some of the biggest brands in food and beverage, including Starbucks, Domino’s, and Papa John’s.  

Joanna holds a bachelor’s degree in English literature and creative writing from The College of New Jersey and a master’s degree in arts and culture journalism from the Craig Newmark Graduate School of Journalism at CUNY. Prior to joining Informa’s Restaurants and Food Group in 2018, she was a freelance food, culture, and lifestyle writer, and has previously held editorial positions at Insider (formerly known as Business Insider) and The Daily Meal. Joanna’s work can also be found in The New York Times, Forbes, Vice, The New York Daily News, and Parents Magazine. 

Her areas of expertise include restaurant industry news, restaurant operator solutions and innovations, and political/cultural issues.

Joanna Fantozzi has been a moderator and event facilitator at both Informa’s MUFSO and Restaurants Rise industry events. 

Joanna Fantozzi’s experience:

Senior Editor, Informa Restaurant & Food Group (August 2021-present)

Associate Editor, Informa Restaurant & Food Group (July 2019-August 2021)

Assistant Editor, Informa Restaurant & Food Group (Oct. 2018-July 2019)

Freelance Food & Lifestyle Reporter (Feb. 2018-Oct. 2018)

Food & Lifestyle Reporter, Insider (June 2017-Feb. 2018)

News Editor, The Daily Meal (Jan. 2014- June 2017)

Staff Reporter, Straus News (Jan. 2013-Dec. 2013)

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