DoorDash (DASH) will pay roughly $16.8 million in restitution to New York delivery workers as part of a settlement resolving a state probe into a previous pay model used by the company, the office of New York Attorney General Letitia James said Monday in a statement.
The company was accused of misusing tips intended for the couriers, known as Dashers, to subsidize guaranteed wages from May 2017 to September 2019, "misleading both consumers and delivery workers," the statement said.
DoorDash confirmed to MT Newswires it has agreed to a settlement related to a pay model that was retired in 2019, adding that it has since made significant changes to its payment practices.
"While we believe that our practices properly represented how Dashers were paid during [the 28-month] period, we are pleased to have resolved this years-old matter," a company spokesperson said in a statement to MT Newswires.
DoorDash was also ordered to revise its payment practices, clearly disclose pay policy details, and improve the couriers' access to their delivery history, the New York Attorney General's office said.
Shares of DoorDash were down 1.1% in recent Monday trading.
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