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AG James Urges DoorDash Delivery Workers to File Claims to Receive Funds from $16M Settlement 

FOOD DELIVERY WORKER on the Grand Concourse in Bedford Park, Sept. 30, 2024
File photo

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New York Attorney General Letitia James is urging current and former delivery workers who have received a notice of eligibility for proceeds arising from a DoorDash settlement reached by the Office of the Attorney General (OAG) to file their claims by Sept. 30.

 

OAG officials said on Tuesday, July 8, that in February 2025, James secured a $16.75 million settlement for delivery workers after an OAG investigation found that DoorDash had misled both consumers and delivery workers (known as Dashers) by using tips intended for Dashers to subsidize their guaranteed pay.

 

James is now urging all delivery workers who have received notice of the settlement (via mail, email, and/or text, including information on how to file a claim) from settlement administrator Atticus Administration to submit a claim online before the deadline.

 

“New York’s delivery workers are integral to our communities, working tirelessly to bring food and other essentials directly to our doorsteps in all conditions,” the Attorney General said. “I am proud to return millions to the pockets of hardworking Dashers and ensure transparency in DoorDash’s payment practices going forward.”

 

She continued, “I urge any Dasher who received notice of the settlement to file a claim now to get their money back before the deadline on September 30, 2025. My office will always fight to ensure workers in New York receive the treatment, benefits, and wages they are due.”

 

OAG officials added that earlier this year, in addition to the $16.75 million “landmark” settlement with DoorDash, the company was also required to revise its payment practices, enhance transparency for both customers and Dashers, and improve order history access for Dashers.

 

They said those who delivered for DoorDash in New York between May 2017 and September 2019 (around 63,000 delivery workers) and had tips applied to their guaranteed pay are eligible to receive money from the settlement fund, which is being entirely distributed to current and former Dashers. They reiterated that any delivery worker who received notice from Atticus Administration and has yet to file a claim should file it online as soon as possible.

 

OAG officials said that their investigation revealed that between May 2017 and September 2019, DoorDash used a guaranteed pay model that let Dashers see how much they would be paid before accepting a delivery. They said under this model, rather than the customer’s tip being given to Dashers on top of their guaranteed pay, the customer’s tip was used to subsidize the guaranteed pay that the Dashers had already been offered.

 

OAG officials said the investigation revealed that customers were misled into believing their tips would directly benefit Dashers but instead, DoorDash kept the tips meant for Dashers and took it out of their guaranteed pay. They said DoorDash would guarantee each Dasher a specific amount of pay but would then only pay the difference above what the tip did not cover.

 

They said DoorDash also failed to clearly disclose these practices to customers and Dashers, adding that at checkout, customers were encouraged to tip with a message reading, “Dashers will always receive 100 percent of the tip.” They said disclosures about the use of tips were buried in online documents and inaccessible during critical moments in the ordering process. They said customers had no way of knowing that DoorDash was using tips to reduce its own costs.

 

Anyone experiencing an issue filing a claim should contact Atticus Administration directly. Dashers with questions about the settlement can contact 1-800-270-1039 or info@NYDoorDashSettlement.com. More information can be found on OAG’s website.

 

 

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