DoorDash to Pay $16.75 Million in New York for Failing to Pay Workers Tips

New York State has settled with DoorDash for $16.75 million for misleading consumers about whether tips intended for delivery workers were actually part of the worker’s pay. The settlement will be distributed to DoorDash workers who made deliveries between 2017 and 2019 in New York. Eligible workers will be contacted by a settlement administrator. 

Between May 2017 and September 2019, DoorDash’s guaranteed pay model allowed their drivers to see their pay before accepting delivery jobs. However, the New York Attorney General Office found that workers could only see their tips if they were greater than the amount DoorDash had already guaranteed to pay them for the order. A state investigation found that DoorDash used customer tips to reduce the guaranteed base pay instead of providing complete tips. DoorDash also failed to make it clear to customers that their tips were being used to offset wages. 

DoorDash was previously sued by Washington DC’s Attorney General for improperly withholding tips in 2019. 

What Happens If Companies Steal From Workers?  

Wage theft is the failure to pay workers the full wages to which they are legally entitled. Wage theft can take many forms, including but not limited to: 

• Off-the-clock violations: Asking employees to work off-the-clock before or after their shifts without paying them overtime.  

• Employee misclassification violations: Misclassifying employees as independent contractors to pay a wage lower than the legal minimum. 

• Minimum wage violations: Paying workers less than the legal minimum wage. 

• Overtime violations: Failing to pay nonexempt employees time-and-a-half for hours worked in excess of 40 hours per week. 

• Meal break violations: Denying workers their legal meal breaks. 

• Pay stub and illegal deductions: Taking illegal deductions from wages or not distributing pay stubs. 

• Tipped minimum wage violations: Confiscating tips from workers or failing to pay tipped workers the difference between their tips and the legal minimum wage. 

A lawsuit for missing wages will require extensive documents and records. Such documentation may include pay stubs and timesheets, W2s, and/or receipts. Generally, an employee will need documentation that their employer is withholding payment.  

Companies that engage in wage theft may be sued by their impacted employees or may be investigated by states enforcing their wage laws. Employers may be required to pay back wages, penalties, and interest to affected employees. 

Do I Need an Employment Lawyer? 

If you believe that your employer has violated your legal rights as a worker, you should hire a local employment lawyer for further assistance. A skilled employment law attorney can help protect your interests and defend your rights under the law. Your attorney can also assist you in filing a lawsuit against an employer and/or colleague and in recovering damages for any losses that you suffered.