DoorDash to settle DC lawsuit over unfair tipping practices for $2.5 million


Under its new policy, the company has to offer base pay that ranges from $2 to $10 — the minimum used to be as low as $1 — and to give drivers 100 percent of their tips. Further, DoorDash has to show drivers a breakdown of how much they’re getting from the company and how much they’re receiving as tips from customers. The food delivery service has to ensure those rules are enforced as part of its settlement with the DC attorney general. As for the $2.5 million it has agreed to pay, $1.5 million will go to delivery workers in DC, $750,000 will go to the District to cover part of the cost of investigating and litigating the issue and $250,000 will go to a couple of DC charities.

DC Attorney General Karl A. Racine said in a statement:

“Today’s settlement rights a wrong that deceived D.C. consumers and deprived workers of monies that they should have been paid. Gig economy companies provide important and necessary services, especially during the pandemic. However, the law applies to these companies, just as it does to their brick and mortar counterparts. All businesses in the District must provide consumers with truthful information and cannot deprive workers of monies they have earned. We are pleased that DoorDash has changed its polices, and with this settlement has taken responsibility for its actions.”



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