This is just fundamentally unfair,” New York Attorney General Letitia James said during a recent news conference

DoorDash agrees to pay $16.75 million to over 60,000 New York delivery workers following allegations of misusing customer tips to subsidize base wages.

But instead of paying that guarantee and letting drivers keep their tips, DoorDash counted the tip toward their base pay and kept what was left. Let’s say a driver is guaranteed $10 on a delivery. DoorDash would pay a minimum of $1 of that no matter what,

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 allegedly used delivery workers’ tips to subsidize their base pay, the New York attorney general said.

DoorDash has reached an agreement with the New York Attorney General over an old practice wherein the company used customers' tips to subsidize its drivers' pay. As the office of New York AG Letitia James explained,

"Customers were misled into believing their tips would directly benefit Dashers," the attorney general's office said in a news release.