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D.C. Attorney General Karl Racine announced the district has reached a $2.5 million settlement with DoorDash over allegations that the company misled consumers and used workers' tips improperly.
"Today's settlement rights a wrong that deceived D.C. consumers and deprived workers of monies that they should have been paid," Racine said in a statement. "Gig economy companies provide important and necessary services, especially during the pandemic. However, the law applies to these companies, just as it does to their brick and mortar counterparts."
Racine sued DoorDash in 2019 over its tipping policy, claiming that tips subsidized DoorDash's payments to workers rather than increasing pay for those workers. The company has since revised that policy.
Under the settlement, DoorDash will pay $1.5 million to affected workers, $750,000 to D.C. and $250,000 to D.C. charities.
Emily Birnbaum ( @birnbaum_e) is a tech policy reporter with Protocol. Her coverage focuses on the U.S. government's attempts to regulate one of the most powerful industries in the world, with a focus on antitrust, privacy and politics. Previously, she worked as a tech policy reporter with The Hill after spending several months as a breaking news reporter. She is a Bethesda, Maryland native and proud Kenyon College alumna.