DoorDash reached a $2.5 million settlement with the attorney general of the District of Columbia over claims that the company misled consumers on how it would allocate tips for workers, the AG’s office announced Tuesday.
AG Karl Racine sued DoorDash in November 2019 over allegations the company misled customers into believing their tips would directly increase drivers’ pay. Instead, Racine alleged at the time, those tips were used to offset the minimum payment DoorDash promised its workers under the previous tipping model in effect between 2017 and 2019. DoorDash has since revised the policy and denied the allegations in the consent order.
Under the settlement, DoorDash will be required to continue ensuring tips go to workers without reducing their base pay and provide accessible information about its payment model and policies to customers and workers.