Food delivery service DoorDash has been found guilty in the state of New York of withholding tips paid to its delivery drivers and then using those tips to unfairly subsidize those workers’ guaranteed base pay. DoorDash must now pay $16.8 million to settle claims regarding the handling of customer tips between May 2017 and September 2019.DoorDash’s delivery drivers, known as Dashers, became rightfully furious when it was discovered that while DoorDash provided Dashers a guaranteed base payment, the company would reduce its contribution if a customer offered a tip and would only pay the Dasher the difference between the base pay and the tip amount. The company would then use the tip to cover its costs. This shady practice was not properly disclosed to customers who had every right to believe that Dashers were receiving the entirety of their tips.The settlement will be divided among some 63,000 workers affected by DoorDash’s scheme to steal its driver’s tips. Many Dashers will receive payouts in the low thousands and a lucky few will receive as much as $14,000 in unpaid tips.That $16.8 million payout joins the ranks of settlements the company has reached for similar accusations of tip misuse, like the $2.5 million it paid out in Washington, D.C. in 2020, and the $11.25 million it paid out for misusing tips in Illinois in 2024. All of this is happening as New York City recently introduced a minimum wage for delivery workers, currently set at $19.56 per hour, not including tips. To quell the strange undue fears and anxieties that bubbled up inside some of you after reading that, no, the hourly wage does not cover time spent waiting for orders.Anyone who worked for DoorDash in NYC during the specified period will be contacted by the settlement administrator to claim their tips.The post DoorDash Ordered to Pay NYC Dashers $17M After Stealing Their Tips appeared first on VICE.