Business & Tech
Window For NYers To File Claim In $16.75M DoorDash Settlement Extended, But Closing Soon
The company misled customers and Dashers, using tips as part of the pay already promised, leading to the settlement, according to the AG.
NEW YORK — That tip you gave the food delivery driver might not have gone where you thought. Now, the window is closing for those workers in New York to claim their part of a multimillion dollar settlement.
New York Attorney General Letitia James is urging current and former delivery workers who have received notice that they are eligible for the Office of the Attorney General's (OAG) DoorDash settlement to file claims before the new year.
In February 2025, James secured $16.75 million 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. The settlement required the company to revise its payment practices and improve transparency. The agreement also improved access to order history for Dashers.
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Now, James has extended the deadline for eligible delivery workers to file claims for restitution to 11:59 p.m. on New Year's Eve and is urging the Dashers who have received a settlement notice to submit a claim online before the deadline.
"Delivery workers keep this city running, and they deserve to see every dollar earned for their hard work," James said. "I encourage all eligible current and former Dashers to submit their claims right away so they can receive the compensation they are owed. My office will keep fighting to ensure every worker in New York is treated with dignity and respect."
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Eligible Dashers have received notice of the settlement from an independent administrator, Atticus Administration, via mail, email, and/or text. The notices include information on how to file a claim.
Approximately 63,000 delivery workers who delivered food for DoorDash in New York between May 2017 and September 2019 are eligible to receive funds from this settlement. As of December 3, more than 30,000 Dashers have submitted their claims.
Between 2017 and 2019, DoorDash employed a guaranteed pay model that allowed Dashers to see their potential earnings before accepting a delivery.
In its investigation, the OAG found that customers were misled into believing their tips would directly benefit Dashers. Instead, DoorDash would keep the tips intended for Dashers and deduct the tip amounts from their guaranteed pay. DoorDash would guarantee pay to a Dasher, and then only actually pay them the amount that the tip did not cover. DoorDash also failed to clearly disclose these practices to customers and Dashers.
At checkout, customers were encouraged to tip with a message reading: "Dashers will always receive 100 percent of the tip." Disclosures about the use of tips were buried in online documents and were inaccessible during critical moments in the ordering process. Customers had no way of knowing that DoorDash was using tips to reduce its own costs.
Dashers with questions about the settlement can contact 1-800-270-1039 or send an email to this address.
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