No need for a mad dash to claim DoorDash settlement money โ at least not yet. Sept. 30 marks the deadline for qualifying deliveristas to collect their funds from a lawsuit alleging the app-based company pilfered tips to offset payroll between May 2017 and Sept. 2019. They can file a claim online at www.nydoordashsettlement.com.
State Attorney General Letitia James secured the $16.75 million settlement this past February against DoorDash, the largest food delivery platform. The lawsuit also mandated revised payment practices, pay policy transparency and worker access to delivery history for at least four years. James advises that eligible โDashersโ claim their restitution as soon as possible.
โI am proud to return millions to the pockets of hardworking Dashers and ensure transparency in DoorDashโs payment practices going forward,โ said A.G. James in a statement. โI 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.โ
Jamesโ investigation found DoorDash allegedly misled customers into believing their tips would unilaterally support their deliverista. Instead, โDashersโ allegedly received the same earnings no matter how much they were tipped unless the gratuity exceeded their base pay (the company would then pay them $1 on top of their total tips). DoorDash did not admit fault in the settlement and discontinued the model in 2019.
โI have been delivering for DoorDash since they started, but I do not work for them as much anymore because the system was not clear and they were taking our tips,โ said Dasher Lee Vaughn earlier this year. โDoorDash never told us accurate distances and the payment amount they would promise was not always true. They would show us an amount plus tips, but they were not telling us the truth. We worked hard and we deserve to be paid.โ
Roughly 63,000 people qualify for claims for delivering food between May 2017 and Sept. 2019 in New York. Undocumented immigrants can also file a claim regardless of status.
DoorDash to pay for tips taken from delivery workers
DoorDash will have to pay its employees $16.75 million to settle a lawsuit that accused it of helping itself to tips.
Minnesota-based settlement administrator Atticus Administration received roughly $1 million from DoorDash to issue the restitution and kicked off outreach in April. Dashers are informed of their eligibility through mail, email or text message. However, Luis Cortes, director of Los Deliveristas Unidos at Worker Justice Project, says people can be skeptical of third-party notices.
โSometimes they got the email [but] they donโt read it or they donโt know what it means.โ said Cortes. โPeople are very afraid of being scammed. So weโre trying to go out and tell them if they did deliveries between 2017 and 2019, they might qualify to get this money.โ
Exactly how much a claimant receives stems from how much he or she lost, how much money is available and how many people actually file a claim (the AGโs Office projects some workers may be owed up to $14,000 on the highest end). Eligible Dashers will receive at least $10. Payment can be sent through physical check, virtual Mastercard or digital money transfer services like Zelle or Venmo.
โWe remain committed to making sure that Dasher earnings are always fair and transparent, and the allegations settled were related to an old pay model that was retired in 2019,โ said a DoorDash spokesperson. โTo be clear: Dashers always keep 100% of tips from orders on the DoorDash app. While we believe that our practices properly represented how Dashers were paid during this period, we are pleased to have resolved this years-old matter and look forward to continuing to offer a flexible way for millions of people to reach their financial goals.โ
Deliveristas secured another majority victory this past Monday when a five-bill package passed, further regulating how app-based delivery companies treated their workers. The legislation will bring back tips at checkout โ DoorDash moved the tipping option to post-checkout after New York City instituted minimum pay laws in 2023.
The bill package will also mandate app-based delivery companies to disclose their pay calculation and breakdown worker earnings each pay period, as well as expand existing baseline protections to deliveristas on smaller platforms and grocery-based apps.
โThese bills represent more than policy โ they are a step toward justice for communities who have too often been invisible in the workforce,โ said Adama Bah, Afrikana chief executive director and founder in a statement. โWe believe every worker, especially Black migrants and immigrants in the delivery sector, should be protected, respected and paid fairly.โ
DoorDashโs senior manager of government relations Kassandra Perez-Desir commended the bill to extend protections to app-based grocery delivery workers.
โINT 1135 reflects a pragmatic step toward treating all delivery workers consistently, regardless of what they deliver,โ said Perez-Desir over email statement. โDoorDash supports fairness and parity for all delivery workers โ whether theyโre delivering a hot meal or a bag of groceries. As always, we look forward to working with city leaders on smart, balanced policies that uplift workers, support small businesses, and strengthen New Yorkโs local economy.โ
But the fight continues. Cortes points to worker deactivations as the next major battle for deliveristas. He says many fear speaking out against unfair practices with no protections against their apps kicking them off. Additionally, the platforms offer varying appeal channels, with some lacking any real process. Meanwhile, deliveristas usually invest substantial overhead in bikes and delivery gear.
โWe want to have these protections because the companies are sending [them] to do unrealistic deliveries,โ said Cortes. โThe workers are going to cross red, going in the opposite direction [and] going on the sidewalk because theyโre afraid of losing their jobs. Itโs not because they feel like superheroes.โ
