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DoorDash to pay $2.5 million for allegedly misusing worker tips

DoorDash will also now be required to maintain a system that guarantees tips go to workers without lowering their base pay.
(KOTA)
Published: Nov. 27, 2020 at 3:12 PM EST
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KNOXVILLE, Tenn. (WVLT/CBS) - DoorDash will pay $2.5 million to resolve allegations that it misused tips intended for workers.

A lawsuit was filed against DoorDash in the District of Columbia. The lawsuit alleged that between 2016 and 2017 DoorDash let consumers believe their tips were for workers when they were actually used in part to fund operations.

The company will be forced to pay $1.5 million in relief to delivery workers, $750,000 to the District of Columbia and $250,000 to two local charities.

DoorDash will also now be required to maintain a system that guarantees tips go to workers without lowering their base pay.

In a statement emailed to CBS MoneyWatch, a DoorDash spokesperson said the company is “pleased to have this issue behind us, and thank the Office of the Attorney General for D.C. for its work throughout this process. Our focus is on continuing to support Dashers, restaurants and customers in DC and around the country.”

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