DoorDash to Pay $16.8 Million in Back Pay to New York Couriers

DoorDash Inc., the biggest food-delivery firm in the US by market share, agreed to pay New York couriers $16.8 million in back pay to resolve a state investigation into its payment practices.

DoorDash used customer tips to subsidize base pay it had already guaranteed to workers between May 2017 and September 2019, “misleading both consumers and delivery workers,” the office of New York Attorney General Letitia James said in a statement on Monday. For example, for orders with guaranteed pay of $10, if a customer tipped $3, the company would pay $7 to the driver. Users also had “no ...