DoorDash has been ordered to pay $16.8M to NY couriers for tip misuse. Learn how this settlement impacts drivers and the company's policies.

The office of New York Attorney General Letitia James has announced a $16.75 million settlement with DoorDash after the delivery company used drivers’ tips to subsidize their guaranteed pay, according to the AG’s office.

DoorDash will pay $16.75 million to settle claims that it unfairly used customer tips to subsidize worker wages in New York between 2017 and 2019.

New York Attorney General Letitia James on Monday announced a $16.8 million settlement between DoorDash and its delivery drivers to recoup tips. NewsdayTV's Ken Buffa reports.

The figure is part of a settlement announced Monday by New York Attorney General Letitia James, who found that customers were misled to believe that their tips would directly benefit delivery drivers.

DoorDash has reached an agreement with the New York Attorney General over an old practice wherein the company used customers' tips to subsidize its drivers' pay. As the office of New York AG Letitia James explained,

DoorDash will pay nearly $17 million in a settlement after the food delivery platform used customer tips to subsidize the wages of New York delivery workers.

The aggregator did not admit to any wrongdoing in the settlement, which concerned tipping practices terminated in 2019.

"Customers were misled into believing their tips would directly benefit Dashers," attorney general officials said in a statement.

The city's top prosecutor said if you were a DoorDash delivery worker in New York between 2017 and 2019 you may be entitled to restitution.