DoorDash to settle DC lawsuit over unfair tipping practices for $2.5 million

DoorDash has agreed to pay $2.5 million to resolve allegations that it used customers’ tips to subsidize delivery drivers’ base pay in Washington, DC. If you’ll recall, the attorney general for the District of Columbia sued the company last year, accusing it of misleading “DC consumers and used tips left for workers to boost the company’s bottom line.” The food delivery service came under fire in 2019 after reports emerged that it was using tips to cover part of drivers’ base pay instead of adding it on top of the minimum amount they were supposed to receive.

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