Doordash agreed to pay $16.75 million to settle the lawsuit by the New York Attorney General.
The lawsuit was already insured to workers between May 2017 and September 2019 by Doordash using customer tips to give workers the full tips they received. He claimed that the base salary was offset. The lawsuit said it was misunderstood to believe that their tips would directly benefit delivery workers.
About 63,000 New York doordash delivery workers will benefit from the settlement.
“We are still committed to ensuring that Dasher's revenues are always fair and transparent and that the resolved claims are related to the old wage model he retired in 2019,” Doordash wrote in TechCrunch said in a statement.