DoorDash to pay $2.5 million to settle District of Columbia driver gratuity lawsuit

Abstract

Doordash ended up to settle a lawsuit charging that they misled customers in D.C about how tips were paid to drivers. Doordash has to pay $2.5 million including $1.5 million for the relief and maintain their payment model that all tips go to the drivers without lowing their base pay. This lawsuit caused by Attorney General Karl Racine, alleging that Doordash used tips to subsidize the 'dasher's pay not giving them back as a gratuity.