As Attorney General James stated, the settlement resulted from DoorDash misleading consumers and its delivery workers, known as “dashers,” by using the tips intended for them to subsidize the dasher’s guaranteed pay.

New York Attorney General Letitia James on Monday announced a $16.8 million settlement between DoorDash and its delivery drivers to recoup tips. NewsdayTV's Ken Buffa reports.

An investigation found the firm used customer tips to subsidize delivery workers’ wages between 2017 and 2019. More than 60,000 may be eligible for the payout.

The payments, part of a settlement with the New York attorney general’s office over a practice that ended in 2019, will return as much as $14,000 to some workers.

DoorDash has agreed to pay $16.75 million to settle a lawsuit by New York's attorney general accusing it of pocketing customers' tips for delivery drivers while misleading both customers and drivers about the practice,

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.

The aggregator did not admit to any wrongdoing in the settlement, which concerned tipping practices terminated in 2019.