DoorDash has agreed to a major payout of over $28 million in 2025 to settle allegations related to past tipping practices in Illinois and New York. This settlement is aimed at compensating Dashers who were affected between 2017 and 2019 when customer tips were allegedly used to cover minimum payments instead of being added on top. If you were an active Dasher during the eligibility period, you may be entitled to a share of the funds. Here’s everything you need to know about eligibility, claim process, payout expectations, and implications for the gig economy.
Why Is DoorDash Paying a Settlement?
Between 2017 and 2019, DoorDash promised Dashers a guaranteed minimum per delivery. However, rather than adding tips on top of that base pay, investigations revealed that tips were used to subsidize that minimum payout. This practice misled both customers and Dashers. Though DoorDash has not admitted wrongdoing, the settlements reflect the need for transparency in gig economy compensation models.
Settlement Details and Amounts
| Location | Period | Settlement Amount | Claim Deadline | Payout Start Date |
|---|---|---|---|---|
| Illinois | July 2017 – Sept 2019 | $11.25 million | February 10, 2025 | After March 4, 2025 |
| New York | May 2017 – Sept 2019 | $16.75 million | To be announced | Early 2025 |
Estimated payouts range from $10 to $14,000 depending on your activity level. Every eligible Dasher will receive a minimum of $2.
Who Is Eligible?
To qualify, you must meet the following requirements:
Illinois Dashers:
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Completed at least one delivery in Illinois between July 24, 2017, and September 30, 2019
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Received tips during deliveries
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Were paid under the “Pay Guarantee” model
New York Dashers:
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Worked as a Dasher in New York between May 2017 and September 2019
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Will be contacted via email, SMS, or mail by the settlement administrator
READ MORE: DCHBX Data Breach Settlement 2025 – Are You Eligible for Compensation?
How to File a Claim
Illinois Dashers:
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The deadline to submit a claim was February 10, 2025
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Payouts are scheduled to begin after March 4, 2025
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Payment options include direct deposit, prepaid card, or mailed check
New York Dashers:
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No need to file immediately
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Settlement administrator will reach out with instructions
What to Expect From Your Payout?
Several factors influence how much you will receive:
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Number of deliveries made
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Amount of tip used toward guaranteed pay
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Length of time you were active
Payouts can range significantly, but everyone eligible will receive at least $2, with some top-tier Dashers receiving much more.
DoorDash’s Response and Reforms
DoorDash CEO Tony Xu responded to the controversy by changing the company’s policy in 2019:
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100% of customer tips now go directly to Dashers
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Increased visibility into pay breakdown
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Clearer communication to customers on tipping impact
These reforms were welcomed by many but are also viewed as a starting point for broader gig economy changes.
Industry Impact of the Settlement
This settlement serves as a reminder that:
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Gig workers need to be informed about their rights and pay structures
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Transparency is becoming a legal and ethical standard
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Other gig companies could face similar scrutiny if their pay policies are unclear or deceptive
For anyone working in the gig economy, this case signals the importance of reviewing your earnings structure and advocating for fair pay.
FAQs
Who is eligible for the DoorDash settlement?
Illinois and New York Dashers who delivered between 2017 and 2019 and were subject to the “Pay Guarantee” model are eligible.
How will I receive my payout?
Illinois Dashers who filed by the deadline can choose direct deposit, prepaid card, or check. New York Dashers will be contacted directly.
Can I still file a claim if I missed the Illinois deadline?
Unfortunately, the Illinois deadline passed on February 10, 2025. No late claims are being accepted.
What is the minimum amount I will receive?
Every eligible Dasher will receive at least $2. Larger payouts depend on delivery volume and tips earned.
Is this settlement taxable?
Most settlement payments may be considered taxable income. It’s advised to consult a tax advisor for clarification based on your situation.
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