DoorDash Reaches $16M Settlement with New York Over Tip Practices

Thousands of delivery workers in the state may be eligible for compensation from the payout.

Mar. 16, 2026 at 10:11pm

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The New York Attorney General's office has reached a $16.75 million settlement with DoorDash over allegations that the company misled customers and delivery workers by applying customer tips towards its guaranteed minimum payments for deliveries, rather than paying tips on top of base earnings. Thousands of current and former DoorDash delivery workers in New York who were affected by this pay model between May 2017 and September 2019 are eligible to submit claims for a portion of the settlement fund.

Why it matters

The DoorDash settlement will provide financial relief to delivery workers in New York who were impacted by the company's alleged tip-skimming practices. The state's investigation found that DoorDash's pay model misled both customers, who believed their tips were going directly to workers, and the Dashers themselves, who expected to receive tips on top of guaranteed minimum payments. Putting millions of dollars back in the hands of affected delivery workers is an important step in ensuring fair compensation in the gig economy.

The details

According to the settlement, eligible Dashers must have used the DoorDash app to make deliveries in New York state between May 2017 and September 2019, and DoorDash must have applied some or all of their customer tips towards the guaranteed minimum payment rather than paying tips on top of base earnings. The state estimates around 63,000 New York delivery workers were impacted by this pay model during the covered period. Eligible Dashers had to submit a claim form by the February 13, 2026 deadline in order to receive a portion of the $16.75 million settlement fund. Payments are being issued on an ongoing basis to Dashers with approved claims, with a minimum payout of $10.

  • The settlement period covers deliveries made in New York state between May 2017 and September 2019.
  • The claim filing deadline was February 13, 2026.
  • Payments are being issued on an ongoing, bi-monthly basis to Dashers with approved claims.

The players

New York Attorney General's Office

The state agency that investigated DoorDash's pay practices and negotiated the $16.75 million settlement.

DoorDash

The food delivery company that reached the settlement with the New York Attorney General's Office over allegations that it misled customers and delivery workers about how tips were applied.

Atticus Administration LLC

The settlement administrator responsible for processing and distributing payments from the $16.75 million settlement fund to eligible Dashers.

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What they’re saying

“If one delivered food for the company during this time, you may be eligible for compensation. There's no formal registration. Rather, DoorDash will reach out to affected employees on further details and any questions they may have.”

— Alex Beene, Financial Literacy Instructor, University of Tennessee at Martin (Newsweek)

“This settlement brings to light concerns from not just those who use food delivery apps for consumption, but also those who work through them. They want to ensure they're being fairly paid, and all additional pay like tips goes to the right area.”

— Alex Beene, Financial Literacy Instructor, University of Tennessee at Martin (Newsweek)

What’s next

The settlement administrator, Atticus Administration LLC, will continue to process and distribute payments from the $16.75 million settlement fund to eligible Dashers on an ongoing, bi-monthly basis.

The takeaway

The DoorDash settlement represents an important victory for delivery workers in the gig economy, holding the company accountable for alleged practices that misled both customers and workers about how tips were being applied. This payout will provide much-needed financial relief to thousands of Dashers in New York who were impacted, underscoring the need for greater transparency and fairness in how platform-based companies compensate their workforce.