DoorDash Settles $11.25M Lawsuit Over Misleading Tip Practices in Illinois

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Claimants need to complete the claim form and verify their identity as an eligible driver. No additional proof is required.
Settlement Summary
In a significant turn of events, food delivery giant DoorDash agreed to a settlement of $11.25 million in a class action lawsuit emanating from Illinois. The lawsuit accused DoorDash of deceiving customers into thinking their tips would boost drivers' earnings, while in reality, the company used these tips to offset its own wage obligations to the drivers. The lawsuit, filed by the Illinois Attorney General's Office, stated that this practice violated the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA). The settlement, therefore, necessitates DoorDash to adhere to a pay model that does not integrate consumer tips into the company's contribution towards drivers' wages. The implications surrounding this case are substantial, particularly for the approximately 80,000 DoorDash drivers who completed deliveries in Illinois between July 2017 and September 2019. These drivers, who allegedly received tips that were not supplementary to their guaranteed pay, stand to receive at least $2 plus a proportional share of the settlement amount. This case underscores the importance of transparency in business practices and may set a precedent for other similar lawsuits in the gig economy. It also highlights the role of regulatory measures like the ICFA in ensuring fair business practices. The settlement further dictates the establishment of a website for eligible drivers to file claims, pushing for more transparent and accessible channels for redressal in the future.
Entities Involved
Eligibility Requirements
- Must be one of the approximately 80,000 DoorDash drivers who completed deliveries in Illinois between July 2017 and September 2019
- Must have received tips that were not paid in addition to the guaranteed amount for those deliveries
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