After years of controversy, DoorDash has finally settled a long-standing dispute over its treatment of delivery gig workers. The company was under fire for diverting customer tips to cover workers' wages instead of passing them along to the drivers. New York Attorney General Letitia James announced that DoorDash has agreed to pay nearly $17 million to settle the claims.

The scandal, which spanned from May 2017 to September 2019, saw DoorDash using a deceptive pay model that shortchanged its workers. Instead of letting drivers keep the tips they rightfully earned, the company used them to meet the guaranteed pay, leaving customers unaware that their tips were not benefiting the workers.

Attorney General James did not mince words, calling out DoorDash for its unfair practices that impacted both workers and customers. The $16.75 million settlement will be distributed among the affected delivery drivers in New York, who will soon receive instructions on how to claim their share of the restitution.

While DoorDash maintains that its practices were justified at the time, critics point to this case as another instance of gig worker exploitation in the rapidly evolving gig economy landscape. This settlement adds to a series of legal battles and controversies surrounding the treatment of gig workers, including the high-profile cases involving Uber and Lyft, which have brought attention to the need for clearer regulations and protections for workers in the gig economy.

Despite the settlement, DoorDash affirms that it has revised its pay structure and remains committed to providing a flexible income source for millions of individuals. The resolution of this long-standing issue marks a significant victory for gig workers and underscores the ongoing challenges faced by those in the gig economy seeking fair and transparent compensation practices.