DoorDash has agreed to pay $16.75 million to settle a tip-withholding case brought by the New York attorney general. The settlement will be distributed among 63,000 delivery workers who received unfair pay under DoorDash’s guaranteed pay model that ran from May 2017 to September 2019.

New Yorkers placed more than 11 million delivery orders with DoorDash during that period, James said, adding that about 63,000 New York delivery workers are expected to benefit from the settlement. In resolving the probe,

DoorDash has reached an agreement with the New York Attorney General over an old practice wherein the company used customers' tips to subsidize its drivers' pay. As the office of New York AG Letitia James explained,