Illinois Settles with DoorDash Over Tipping Practices

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  • Illinois AG Kwame Raoul has reached a settlement with DoorDash, Inc. to resolve allegations that the company misrepresented to consumers how tips were allocated to drivers in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act.
  • In the settlement, the AG’s office alleges that DoorDash misled consumers regarding its “Guaranteed Pay Model” over a two-year period during which DoorDash used customers’ tips to subsidize the pay promised to Illinois delivery drivers.
  • Under the terms of the settlement, DoorDash must pay $11.25 million into a settlement fund from which payments will be made to the 79,262 DoorDash drivers affected, and also must maintain a driver pay model that ensures all tips are distributed to drivers on top of guaranteed pay, among other relief.
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