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DoorDash to pay NY delivery workers $17 million for using their tips to cover wages
DoorDash will pay almost $17 million to settle claims that it unfairly used customer tips to subsidize the wages of its delivery workers in New York.
NEW YORK (AP) — The ubiquitous food delivery app DoorDash will pay almost $17 million to settle claims that it unfairly used customer tips to subsidize the wages of its delivery workers in New York, rather than letting drivers keep the tips on top of their guaranteed pay, Attorney General Letitia James said Monday. The company will pay $16.75 million in restitution that will be distributed to DoorDash workers who made deliveries between May 2017 and September 2019 in New York. In a statement, DoorDash said, “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.”
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