Finance

DoorDash Settlement 2025: How to Claim Your Portion of the Settlement?

DoorDash has agreed to a $28 million settlement in 2025 over past tipping practices. If you worked as a Dasher in New York or Illinois between 2017 and 2019, you might be eligible for a payout.

By Anjali Tamta
Published on

DoorDash Settlement 2025: If you’ve worked as a delivery driver for DoorDash in recent years, there’s some important news you need to know. The DoorDash Settlement 2025 could mean you’re entitled to a payout from the company due to past pay practices that may have shortchanged drivers. But how do you know if you’re eligible, and how can you actually claim your money? Let’s break it down step by step.

DoorDash Settlement 2025
DoorDash Settlement 2025

DoorDash has agreed to multiple legal settlements in 2024 and 2025, most notably in New York and Illinois, following allegations that it used customer tips to subsidize drivers’ base pay. If you were a Dasher (DoorDash driver) during the impacted periods, you might be owed a portion of these multi-million-dollar settlements. This guide will help you understand what’s going on, how it might affect you, and what you can do next.

DoorDash Settlement 2025

Key PointDetails
States InvolvedNew York, Illinois
Total Settlement Amount$28 million combined (NY: $16.75M, IL: $11.25M)
Eligibility PeriodNY: May 2017 – Sept 2019, IL: July 2017 – Sept 2019
Estimated Eligible Dashers63,000+ (NY)
Deadline to File (Illinois)February 10, 2025
Claim Status (New York)Notifications in progress; payout expected early 2025
Official SourceNew York AG Website, Illinois Settlement Site

The DoorDash Settlement 2025 represents more than just a payout—it’s a signal that gig workers’ concerns are being heard. If you drove for DoorDash in New York or Illinois between 2017 and 2019, this is your chance to receive compensation for past unfair pay practices. But beyond that, it’s also a moment of progress for the gig economy at large.

With over $28 million on the table and more than 60,000 eligible Dashers, the impact of these settlements is both meaningful and widespread. Follow the steps outlined above, and don’t hesitate to reach out to the official resources for help. The process is designed to be straightforward, and taking action now could mean extra money in your pocket.

What Is the DoorDash Settlement 2025 About?

The DoorDash Settlement 2025 is the result of significant legal action that challenged how DoorDash previously compensated its drivers. The controversy centered on the company’s “Pay Guarantee Model,” which was used between 2017 and 2019. Under this model, customer tips were reportedly used to make up part of a driver’s guaranteed payment rather than being added on top as extra earnings.

So, let’s say a delivery was promised to pay $7. If a customer tipped $3, DoorDash might only provide $4 in base pay to reach the $7 guarantee—keeping the Dasher’s total at $7, rather than allowing them to earn $10. This practice caused a stir because customers believed their tips were going directly to the drivers, not offsetting company costs.

Public backlash ensued, followed by investigations and legal action. The result? DoorDash agreed to pay substantial settlements:

  • $16.75 million to eligible Dashers in New York
  • $11.25 million to eligible Dashers in Illinois

These settlement funds are now being prepared for distribution, with each state’s attorney general overseeing the process to ensure fairness and compliance.

Who Is Eligible for the DoorDash Settlement 2025?

New York Settlement Criteria

To be eligible for compensation under the New York agreement, you must:

  • Have worked as a Dasher in the state of New York
  • Completed deliveries between May 2017 and September 2019
  • Been paid under the Pay Guarantee Model

According to the New York Attorney General’s office, more than 63,000 Dashers could qualify to receive a portion of the settlement.

Illinois Settlement Criteria

To qualify for compensation under the Illinois settlement, you must:

  • Have made deliveries in Illinois
  • Worked between July 2017 and September 2019
  • Been compensated under DoorDash’s Pay Guarantee Model

It’s important to note that the deadline to submit a claim for Illinois Dashers was February 10, 2025. If you missed that deadline, you might no longer be eligible unless a grace period or new claim window is announced.

How to Claim Your Portion of the DoorDash Settlement 2025

Step-by-Step Guide for New York Dashers:

  1. Check Your Email and Mail Regularly: Settlement administrators are reaching out directly via email, text message, and traditional mail to Dashers who qualify.
  2. Review the Notification: Any message you receive should contain details about your eligibility and a unique Claim Form.
  3. Complete and Submit the Claim Form: Be sure to provide any requested documentation, such as a copy of your driver’s license or DoorDash account details.
  4. Monitor Payment Timeline: Payments are expected to be issued early in 2025, but dates may vary based on claim volume and verification timelines.

Step-by-Step Guide for Illinois Dashers:

  1. Visit the official Illinois settlement site: www.ildoordashsettlement.com
  2. Log in or submit your Claim Form if the site indicates a grace period is available.
  3. Claims submitted before the February 10, 2025 deadline are being processed, with payments expected after March 4, 2025.

If you’re unsure about your eligibility, you can also contact the settlement administrator directly using the contact info listed on the official websites.

Why This Settlement Matters (Beyond the Payout)

This isn’t just about individual compensation—it’s about systemic change in how gig economy workers are treated. DoorDash’s earlier pay model raised significant concerns about transparency, fair labor practices, and worker rights in a fast-growing gig industry that millions rely on for income.

The legal actions taken by state governments are setting a precedent for greater oversight of how companies structure pay models and use customer tips. Similar issues have cropped up at Instacart, Amazon Flex, and Grubhub, indicating that this isn’t an isolated case. It’s part of a larger shift toward protecting the rights of gig workers who often operate without traditional employment benefits or protections.

If you’re a gig worker today—or considering joining a platform like DoorDash, Uber Eats, or others—this case serves as a valuable reminder to:

  • Read the fine print on pay policies
  • Ask questions when something seems unclear
  • Stay informed about legal updates and worker protections

By doing so, you’ll be better equipped to advocate for yourself and make decisions that benefit your financial well-being.

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FAQs About DoorDash Settlement 2025

1. How do I know if I’m eligible?

If you worked as a Dasher in New York from May 2017 to September 2019 or in Illinois from July 2017 to September 2019, and you were paid under the Pay Guarantee Model, there’s a strong chance you qualify. Watch for a message from the settlement administrator.

2. What if I didn’t get a notice?

First, check your spam, promotions, or junk folders. These notifications often get filtered by mistake. Also, check any old email addresses you may have used with DoorDash. If you’re still unsure, visit the Illinois Settlement Website or the New York Attorney General website to search for updates or contact support.

3. How much money will I receive?

That depends on how many deliveries you completed, the total tip amount involved, and how many other Dashers file valid claims. There’s no fixed amount, but those who worked more are likely to receive more.

4. Is this taxable income?

In most cases, yes. The IRS typically considers settlement payouts to be taxable. We recommend speaking to a tax professional to understand how it applies to your specific situation.

5. What if I moved out of state?

Relocation doesn’t disqualify you. If you delivered in the eligible state(s) during the required timeframe, you should still be eligible. Just make sure your current contact information is up to date with DoorDash and the settlement administrator.

6. Can I still file if I missed the deadline?

If you’re in Illinois and missed the February 10 deadline, you may not be eligible unless a new claim window is announced. For New York, claims are still in progress, so keep an eye out for your notification.

Author
Anjali Tamta
Hey there! I'm Anjali Tamta, hailing from the beautiful city of Dehradun. Writing and sharing knowledge are my passions. Through my contributions, I aim to provide valuable insights and information to our audience. Stay tuned as I continue to bring my expertise to our platform, enriching our content with my love for writing and sharing knowledge. I invite you to delve deeper into my articles. Follow me on Instagram for more insights and updates. Looking forward to sharing more with you!

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