United States of America: Office of the Attorney General reached settlement in concluding investigation into company’s tipping and pay structure for delivery workers

On 24 February 2025, the New York Attorney General's Office (OAG) concluded a legal settlement with DoorDash following an investigation into the company's tipping and pay structure for delivery workers. The investigation revealed that, from May 2017 to September 2019, DoorDash utilised customer tips to fulfil a predetermined guaranteed base pay, as opposed to distributing them as additional earnings. The terms of the agreement stipulate that DoorDash shall make restitution to affected workers in the amount of USD 16.75 million and make adjustments to its pay model in order to align with the terms of the agreement. In particular, the pay model must include the full payment of consumer tips to Dashers without affecting the company's guaranteed pay contribution. The company is also obligated to disclose pay policy details to Dashers and consumers, including a breakdown of base pay, promotional bonuses, and tips for each delivery. Furthermore, Dashers, including deactivated workers, must have access to their delivery records for a minimum of 4 years. Finally, DoorDash is required to submit compliance reports every 6 months for the subsequent 3 years.