Illinois Attorney General announced an $11.25 million settlement with DoorDash in November 2024, resolving allegations of violations of the Consumer Fraud and Deceptive Business Practices Act. The lawsuit claimed that DoorDash misled customers about how their tips were used to pay delivery drivers, impacting the earnings of dashers under the Pay Guarantee Model between July 2017 and September 2019.
Now, claimants who submitted a valid claim form before the February 10, 2025, deadline can soon expect their payout. Here’s everything you need to know about the settlement, payment details, and what dashers can anticipate next.
DoorDash Lawsuit
The Illinois Attorney General’s Office sued DoorDash over its Pay Guarantee Model, which allegedly misled customers into thinking their tips increased drivers’ earnings. Instead, the lawsuit claimed that DoorDash used customer tips to fulfill the guaranteed minimum payment for dashers. This meant the company contributed as little as $1 per order, and the rest of the guaranteed pay came from customer tips.
Although DoorDash ended this practice in 2019, the settlement aims to compensate dashers who were impacted by the policy.
Who Is Eligible for a Payout?
Dashers who meet the following criteria will receive a payout from the settlement:
- Completed deliveries in Illinois through DoorDash between July 2017 and September 2019 under the Pay Guarantee Model.
- Received tips from customers during that period that were used to meet DoorDash’s guaranteed pay amount.
- Submitted a valid claim form before the February 10, 2025, deadline.
- Did not exclude themselves from the settlement.
When Will Dashers Receive Their Settlement Payout?
The settlement administrator will begin distributing payments after March 4, 2025. The exact timing depends on processing times, but eligible claimants can generally expect their payout within 90 days of the settlement’s effective date.
How Much Will Dashers Receive?
The settlement fund of $11.25 million will be distributed after deducting administrative expenses, taxes, and other costs. The payout formula is:
$2 + Dasher Percentage (Settlement Fund – Administrative Costs – $2 per claimant)
Each eligible dasher will receive a minimum of $2, with additional amounts based on the number of deliveries completed, tips received, and the total number of valid claims.
How Will Dashers Receive Their Payment?
Dashers could select their preferred payment method when filing their claim. Available options include:
- ACH transfer (direct deposit)
- Prepaid digital or physical card
- Physical check (mailed to the address provided on the claim form)
If you opted for a check and have moved recently, update your mailing address with the settlement administrator to ensure you receive your payment.
What Changes Will DoorDash Implement? (Injunctive Relief)
Besides monetary compensation, DoorDash has agreed to the following changes:
- Ensure tips are fully distributed to drivers and do not count toward their base pay.
- Disclose its payment model to both dashers and customers within the DoorDash app.
- Provide the following details to dashers before they accept an order:
- Minimum guaranteed pay for the delivery.
- Estimated distance of the order.
- Show a detailed breakdown of payments after each completed delivery, including:
- Base pay.
- Consumer tip.
- Any additional compensation from DoorDash beyond base pay and tips.
- Allow dashers to access their dash history for at least five months within the app.
- Submit a compliance certificate to the Illinois Attorney General’s Office every six months for the next two years.
FAQs About the DoorDash Settlement
1. What happens if I missed the claim deadline?
If you didn’t submit a claim before February 10, 2025, you will not receive a payout. Unfortunately, the deadline has passed, and no late claims will be accepted.
2. How can I check the status of my payout?
You can visit the official settlement website or contact the settlement administrator for updates on your payment status.
3. Will my payment be taxed?
Settlement payments may be subject to taxes depending on your state’s tax laws. Consult a tax professional if you’re unsure how it will affect you.
4. Can I still work for DoorDash if I claimed a settlement payment?
Yes, filing a claim does not impact your ability to work as a Dasher. The settlement is separate from your employment status with DoorDash.
5. What if I change my payment method or address?
If you need to update your mailing address or payment method, contact the settlement administrator as soon as possible to avoid delays.
Final Thoughts
Dashers who submitted a valid claim can expect their payout starting March 4, 2025. Be sure to check your bank account, email, or mailbox for updates. This settlement not only compensates affected drivers but also ensures that DoorDash maintains transparency in its tipping and pay structure moving forward.
Stay tuned for further updates, and make sure your contact details are current with the settlement administrator to avoid missing your payment!