Attorney General James Secures $16.75 Million from DoorDash for Cheating Delivery Workers Out of Tips

 

DoorDash Used Customer Tips to Offset Workers’ Base Pay Rather Than Pay Them the Full Amount

More Than 60,000 New York Delivery Workers May Be Eligible to Receive Restitution Payment from DoorDash

New York Attorney General Letitia James announced a $16.75 million settlement with delivery platform DoorDash for misleading both consumers and delivery workers (known as “Dashers”) by using tips intended for Dashers to subsidize their guaranteed pay. Between May 2017 and September 2019, DoorDash used a guaranteed pay model that let Dashers see how much they would be paid before accepting a delivery. An Office of the Attorney General (OAG) investigation found that under this model, DoorDash used customer tips to offset the base pay it had already guaranteed to workers, instead of giving workers the full tips they rightfully earned. DoorDash will pay $16.75 million in restitution for Dashers and up to $1 million in settlement administrator costs to help issue the payments.

“Delivery workers are integral to our communities, working tirelessly to bring food and other essentials directly to our doorsteps in all conditions,” said Attorney General James. “DoorDash misled customers who generously tipped and deceived Dashers who deserved to be paid in full. This settlement returns millions to the pockets of hardworking Dashers and ensures transparency in DoorDash’s payment practices going forward. My office will continue to protect New York workers from deceptive business practices and ensure they receive all of the money they’ve earned.”

The OAG investigation found that under DoorDash’s deceptive pay model, workers were only able to see their tips if they were greater than the amount DoorDash had already guaranteed to pay them for the order. DoorDash would always pay a minimum of $1 to the Dasher and would use the tips paid by the customer to offset the rest of the amount guaranteed to the delivery worker. 

For example, for orders with a guaranteed amount of $10:

• If a customer tipped $0, DoorDash would pay $10 ($1 + $9 remainder). The Dasher received $10.
• If a customer tipped $3, DoorDash would pay $7 ($1 + $6 remainder). The Dasher still only received $10.
• If a customer tipped $6, DoorDash would pay $4 ($1 + $3 remainder). The Dasher still only received $10.
• If a customer tipped $9, DoorDash would pay $1 ($1 + $0 remainder). The Dasher still only received $10.
• If the customer tipped $11, DoorDash would pay $1 ($1 + $0 remainder).The Dasher only received $12.

Customers were misled into believing their tips would directly benefit Dashers. Instead, DoorDash would keep the tips meant for Dashers and take it out of their guaranteed pay. DoorDash would guarantee pay to a delivery worker, and then only actually pay them whatever the tip did not cover.

DoorDash also failed to clearly disclose these practices to customers and Dashers. At checkout, customers were encouraged to tip with a message reading “Dashers will always receive 100 percent of the tip.” Disclosures about the use of tips were buried in online documents and inaccessible during critical moments in the ordering process. Customers had no way of knowing that DoorDash was using tips to reduce its own costs.

Attorney General James has secured $16.75 million in restitution from DoorDash, which a settlement administrator engaged by OAG will distribute directly to Dashers affected by the deceptive pay model, providing them the compensation they were denied. Any worker who delivered for DoorDash between May 2017 and September 2019 in New York state may be eligible to file a claim for this settlement. During that period, New Yorkers placed more than 11 million delivery orders with DoorDash and approximately 63,000 New York delivery workers stand to benefit from this settlement. Payments are expected to begin in early 2025. Eligible drivers will be contacted by the settlement administrator via mail, email, and/or text with notices of the settlement and information on how to file a claim.

In addition to the restitution fund, DoorDash must:

• Revise Payment Practices: DoorDash is required to maintain a pay model that ensures consumer tips are paid to Dashers in their entirety, without impacting DoorDash’s contribution to guaranteed pay.
• Enhance Transparency: The company must clearly disclose pay policy details to both Dashers and consumers, and share a breakdown of base pay, promotional bonuses, and tips with Dashers for every delivery.
• Improve Dash History Access: Dashers, including those deactivated, will have access to their delivery history for at least four years.

“This settlement shows the scale at which DoorDash steals from its workers and the scale at which it lies,” said Ligia Guallpa, Executive Director of Worker’s Justice Project and Co-founder of Los Deliveristas Unidos. “And when you steal and lie at this scale, it’s systemic, it’s baked into your business model. And a business model that requires you to steal from workers and customers is a failure. New York City sees what we’re up against and how much more work there is to do to fight back against the predatory labor practices that this industry is built on. But this also shows the collective power of workers and what we can accomplish when we’re united in solidarity with each other and with allies who are willing to hold exploiters accountable. Thank you Attorney General James for being a true friend to workers. And shame on you, DoorDash! While they lie and steal at scale, we are organizing at scale and building collective worker power. We are grateful to have the New York State Attorney General in this fight as we expand our efforts to hold these app companies accountable. We won’t stop fighting to ensure the dignity and respect these workers deserve.”

Fourteen Members of Extensive Alien Smuggling Organization Charged and Eight Arrested for Smuggling Hundreds of Illegal Aliens into the United States

 

Fourteen alleged members of a prolific alien smuggling organization were charged for their roles smuggling aliens from South and Central America into the United States via the southern border.

A grand jury in Las Cruces, New Mexico, returned an indictment on Feb. 19 against 14 individuals for conspiracy to transport, harbor, and bring in illegal aliens to the United States. Eight of those charged were arrested on Feb. 20 and 21.

“This indictment alleges that the defendants engaged in a sophisticated conspiracy to smuggle aliens into and throughout the United States at great danger to the aliens, resulting in the death of one person,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “The Justice Department worked with our partners at the Department of Homeland Security (DHS) to dismantle an alien smuggling organization based in Mexico that has allegedly smuggled hundreds of illegal aliens, including unaccompanied children, through New Mexico and South Texas. We are committed to eliminating transnational alien smuggling organizations that exploit migrants purely for profit and undermine our national security.”

According to the indictment unsealed, the defendants participated in a conspiracy to illegally bring undocumented aliens from Mexico into the United States via the U.S. southern border. The indictment alleges that the defendants were also responsible for transporting the aliens within the United States and concealing them in “stash houses” along the way. During some of the smuggling events, the defendants allegedly evaded law enforcement by travelling at high rates of speed on the road and instructing aliens how to flee U.S. Border Patrol and evade checkpoints. Additionally, the indictment alleges that one undocumented alien died from heat exposure during a smuggling event and was abandoned in the desert.

“Human smuggling organizations threaten our national security and exploit vulnerable individuals for profit, putting their lives at risk and undermining public safety,” said Acting U.S. Attorney Holland S. Kastrin for the District of New Mexico. “The U.S. Attorney’s Office in the District of New Mexico is committed to continuing to work with our federal, state and local partners to dismantle transnational human smuggling organizations, hold their leaders accountable, and seize the illicit proceeds generated by these exploitative enterprises.”

“We are appreciative of our brave law enforcement partners for their continued vigilance in investigating and apprehending members of transnational criminal organizations who conspire to undermine our nation’s immigration laws for their profit, with a callous and reckless disregard for the sanctity of life,” said U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) El Paso Special Agent in Charge Jason T. Stevens. “As this case sadly demonstrates, human smuggling is a crime that takes lives and puts the public at risk. ICE HSI is passionately devoted to using its abundant authority to identify, investigate, and arrest criminals who prey on the vulnerabilities of people they treat as human cargo.”

Michelle Martinez, 29, of El Paso, Texas; Jesus Calvillo, 44, of El Paso; Jorge Calvillo, 25, of El Paso; Abel Aguilar-Cano, 53, of Albuquerque, New Mexico; and Jose Palomino, 27, of El Paso, made their initial court appearances today in the District of New Mexico and remain in U.S. custody. Edna Valdez-China, 48, of El Paso; Leslie Nicole Calvillo, also known as Leslie Jaramillo, 24, of El Paso; and Melissa Vargas, 22, of El Paso, are in U.S. custody and will make their initial appearances on Feb. 25 in the District of New Mexico. Jorge Alberto De La Cruz-Dominguez, also known as Guero, 54, of Juarez, Mexico; Jorge Valdez China, also known as Lolo, 23, of El Paso; Jonathan Valdez-China, also known as China and Dior, 24, of Juarez; and Alma Guadalupe Valdez-China, 41, of Juarez, are also charged in the indictment.

Each defendant is charged with conspiracy to bring to, transport, and harbor illegal aliens in the United States. If convicted, they each face a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

ICE HSI El Paso and the U.S. Border Patrol investigated the case. U.S. Customs and Border Protection’s National Targeting Center, the Drug Enforcement Administration (DEA), ICE HSI’s Human Smuggling Unit in Washington, D.C., and the Texas Department of Public Safety provided substantial assistance with the investigation.

Assistant U.S. Attorney Alyson R. Hehr for the District of New Mexico and Trial Attorney Jenna Reed of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case.

These actions are the result of the coordinated efforts of Joint Task Force Alpha (JTFA). JTFA was established in June 2021 to marshal the investigative and prosecutorial resources of the Justice Department, in partnership with DHS, to combat the rise in prolific and dangerous alien smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, Honduras, Panama, and Colombia. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of California, District of Arizona, District of New Mexico, and Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP and supported by the Office of Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in more than 355 domestic and international arrests of leaders, organizers, and significant facilitators of alien smuggling; more than 300 U.S. convictions; more than 245 significant jail sentences imposed; and forfeitures of substantial assets.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

MAYOR ADAMS, DCWP COMMISSIONER MAYUGA ANNOUNCE MORE THAN $2.6 MILLION IN WORKER RELIEF FROM FIVE MAJOR BUSINESSES

 

Over 3,400 Workers Will Receive Restitution for Violations of New York City’s Workplace Laws 

New York City Mayor Eric Adams and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga today announced more than $2.6 million in relief secured for workers from five major businesses to resolve violations of New York City’s workplace laws, including failing to give workers their schedule far enough in advance, adding hours to workers’ schedules without their consent, and more. Burlington Coat Factory, Starbucks, Tavern on the Green, Hot Topic, and Elara Caring (an in-home care services provider) will pay a combined $2.6 million in restitution to more than 3,400 workers. As part of the agreement, all companies must comply with the city’s workplace laws going forward. 

  

“Making New York City the best place to raise a family means protecting workers’ rights and making sure they get every dollar they deserve,” said Mayor Adams. “The agreements we are announcing today will help put money back in people’s pockets, build on the tens of millions of dollars we’ve already secured for New Yorkers, and reinforce that our administration will always stand up for working-class families.” 

  

“We are committed to ensuring that every worker is treated fairly and that they know their rights in the workplace, including receiving a reliable schedule and paid time off,” said DCWP Commissioner Mayuga. “With these settlements, we are bringing relief to the thousands of workers who had their rights violated and holding accountable those employers that chose to violate the city’s workplace laws.”   

    

Burlington Coat Factory will pay more than $1.3 million in restitution to 865 workers from one location in the Bronx and nearly $137,000 in civil penalties and costs. DCWP’s investigation found that the company violated the Fair Workweek Law by failing to give workers their schedules 72 hours in advance, adding hours to workers’ schedules without their consent, and violating prohibitions against on-call scheduling.   

  

Elara Caring will pay more than $913,000 in restitution to more than 2,200 workers, as well as nearly $92,000 in civil penalties and costs. DCWP’s investigation found the company violated the city’s Paid Safe and Sick Leave Law by not allowing workers to use their paid safe and sick time as required by the law.   

   

Tavern on the Green will pay more than $150,000 in restitution to 301 workers, as well as nearly $16,000 in civil penalties and costs. DCWP’s investigation found Tavern on the Green violated the city’s Paid Safe and Sick Leave Law by not allowing workers to use their paid safe and sick time as required by the law.  

  

Hot Topic will pay more than $135,000 in restitution to 64 workers from one location on Staten Island, as well as $15,000 in civil penalties and costs. DCWP’s investigation found that the company violated the Fair Workweek Law by failing to get workers’ consent before adding hours to their schedule, giving workers their schedules less than 72 hours in advance, and cancelling workers’ shifts on short notice.    

  

Starbucks will pay more than $112,000 in restitution to 48 workers from one location in Brooklyn, as well as $12,500 in civil penalties and costs. DCWP’s investigation found that the company violated the Fair Workweek Law by failing to get workers’ consent before adding hours to their schedule, giving employees access to hours before hiring new employees, and failure to pay premium pay.    

  

“Wage theft costs New Yorkers over $3 billion per year, and we will fight to get workers every penny they are owed. I was proud to help pass in Albany the bill to treat stolen wages the same as other stolen money and to provide full employment protections to domestic workers,” said New York State Assemblymember Jenifer Rajkumar. “Today’s settlement to resolve wage theft and other workplace law violations brings justice to 3,400 workers, putting $2.6 million they earned into their pockets. In the midst of an affordability crisis, this will uplift thousands of our fellow New Yorkers so they can have a roof over their heads and food on the table. Together, we will support all hard-working New Yorkers and ensure that they have the respect and dignity they so rightfully deserve.” 

  

Since 2014, DCWP has received more than 13,600 complaints about potential workplace violations, closed more than 6,500 investigations, and secured more than $65 million in restitution and civil penalties for over 75,500 workers across all workplace cases. Since the start of the Adams administration, DCWP has secured more than $46 million in restitution for nearly 29,200 workers.  

  

The Workers’ Bill of Rights — a multilingual and comprehensive guide to rights in the workplace in New York City — summarizes the laws that protect workers and job applicants in New York City, regardless of immigration status. The Workers’ Bill of Rights includes information on rights enforced by DCWP, like Paid Safe and Sick Leave, the Fair Workweek Law, the Temporary Schedule Change Law, and the city’s Delivery Worker Laws, as well as rights enforced by other state and federal agencies, like minimum wage and the right to organize. It also includes information about who to contact for more information or with questions, as well as how to file a complaint. Workers and employers can visit DCWP’s workers’ rights page or call 311 (212-NEW-YORK outside New York City) for more information about the laws that DCWP enforces or to file a complaint. Complaints can be filed anonymously. It is illegal for employers to retaliate against employees for filing complaints.  

 

NYS Gaming Commission Names Terryl Brown to Gaming Facility Location Board

The New York State Gaming Commission (Commission) unanimously appointed Terryl Brown to the New York Gaming Facility Location Board (Board), which is overseeing the commercial casino siting process in the New York Metro region.

“The Gaming Facility Location Board’s work can be transformational for the State of New York,” said Commission Chair Brian O’Dwyer. “Ms. Brown brings a wealth of experience, expertise and public service to the team that will evaluate casino proposals. I thank her and the entire Board for its ongoing work and service to New York State.”

Terryl Brown currently serves as Vice President and General Counsel at Pace University. Prior to taking her position at Pace, Brown served as Deputy Commissioner of Legal Affairs and Administration for the New York City Fire Department, where she oversaw operations and legal matters for a department comprised of 17,000 employees. Brown has also been Chief Ethics Officer and Counsel with the New York State Attorney General’s Office, Acting Counsel to Governor David Paterson, First Assistant Counsel to Governor Eliot Spitzer, a Commissioner of the New York State Joint Commission on Public Ethics, Executive Vice President and General Counsel at the New York Power Authority, and a Partner at Harris Beach PLLC.

Brown graduated from Pace University with a bachelor’s degree in political science; earned a master’s from Villanova University; and a J.D. and M.B.A. from University of Pittsburgh. She completed an advanced finance program at the University of Pennsylvania.

Brown joins Vicki Been, Marion Phillips, III, Stuart Rabinowitz, and Greg Reimers on the Gaming Facility Location Board.

The Board is ultimately responsible for reviewing and evaluating casino applications and recommending up to three facilities for licensure. To learn more about the Board and the casino siting process, visit nycasinos.ny.gov. 

NYC PUBLIC ADVOCATE CONDEMNS THE MAYOR MISLEADING NEW YORKERS

 "The mayor’s notion that I and many others did not criticize the Biden administration or petition for funding and policy change in response to the surge of migrants is not only verifiably false, it’s absurd. We were in the streets, and we were in DC – just not for the Trump inauguration.”  

"Unlike this mayor, none of us have pledged not to criticize the president, or ordered agencies to do the same. Also, unlike him, we chose not to pit longtime New Yorkers with little against new arrivals with less, after first inviting the early waves of buses. If he is intentionally misleading the public in his own defense, that is deeply troubling, but does track with past governing choices.  

 

"I understand that the mayor is in crisis, and I try to remain focused on the work amid the noise. At the same time, my priority at this moment is providing New Yorkers with stability and the truth – unfortunately, at present, the mayor is providing New Yorkers with neither." 

New Bronx Chamber of Commerce - Join Us: Free Financial Literacy Event!

 

SIGN UP TODAY!

FINANCIAL LITERACY SERIES: PART 1

In partnership with Councilwoman Kristy Marmorato and City National Bank, the Bronx Chamber of Commerce is proud to present the first part of our three-part Financial Literacy Series!

Join us for an evening of B2B networking, valuable financial insights, and meaningful conversations with your local Councilwoman. Don't miss this opportunity to connect and learn!

Important Details: Tuesday, February 25, 2025 from 6 PM – 8 PM Michaelangelos Wood Fired Pizza & Pasta -  Williamsbridge Rd. FREE EVENT Light Refreshments Provided  Registration is MANDATORY Register today For any questions, please contact  outreach@bronxchamber.org Small businesses thrive on knowledge— don’t miss this chance to grow!

MAYOR ADAMS ANNOUNCES FORTHCOMING CLOSURE OF ROOSEVELT HOTEL ASYLUM SEEKER HUMANITARIAN RELIEF AND ARRIVAL CENTER

 

Adams Administration’s Asylum Seeker Management Strategies and Border Policy Advocacy Have Helped Lead to Over 7 Months of Shelter Census Decreases, Total Savings Reaching More Than $5.2 Billion Over Three Fiscal Years

 

80 Percent of Migrants That Have Sought Care from City Have Taken Next Steps in Journeys

 

Between June 2024 and June 2025, Adams Administration Will Have Closed 53 Emergency Migrant Shelters Thanks to Exit Policies

 

WATCH: Mayor Adams Announce Closure of The Roosevelt Hotel Asylum Seeker Arrival Center and Humanitarian Emergency Response and Relief

New York City Mayor Eric Adams today announced the forthcoming closure of both the Asylum Seeker Arrival Center and Humanitarian Emergency Response and Relief Center located at The Roosevelt Hotel, marking a significant milestone in New York City’s nearly three-year asylum seeker humanitarian response. The site has been instrumental in supporting hundreds of thousands of migrants on their journeys toward achieving self-sufficiency in the United States. Opened in May 2023 — during the height of the international asylum seeker crisis, with the city receiving an average of 4,000 arrivals each week — the facility has functioned as a centralized intake center for newly arriving asylum seekers. The site has provided a variety of supportive services to migrants, including legal assistance, medical care, and reconnection services, as well as served as a humanitarian relief center for families with children. Out of the more than 232,000 migrants that have come into the city’s care since the spring of 2022, more than 173,000 registrations were completed at The Roosevelt Hotel between May 2023 and February 2025. In recent months, the average number of registrants has decreased to approximately 350 per week. Going forward, these intake functions and supportive services will now be integrated into other areas of the system.

 

“While we’re not done caring for those who come into our care, today marks another milestone in demonstrating the immense progress we have achieved in turning the corner on an unprecedented international humanitarian effort,” said Mayor Adams. “Our administration has skillfully managed this crisis, which has seen over 232,000 migrants enter our city asking for shelter, and The Roosevelt Hotel has been key in allowing us to effectively manage our operations, processing over 173,000 individuals through these doors. Now, thanks to the sound policy decisions of our team, we are able to announce the closure of this site and help even more asylum seekers take the next steps in their journeys as they envision an even brighter future, while simultaneously saving taxpayers millions of dollars. The fact that, within a span of year, we are closing 53 sites and shuttering all of our tent-based facilities shows both our continued progress and our ability, when faced with unprecedented challenges, to do what no other city can.”

 

“There are so many moments that I can point to where we have made significant strides in positively and effectively impacting the lives of the thousands of migrants who made their way to New York City, but the activation of The Roosevelt Arrival Center was true game changer,” said Mayor’s Office of Asylum Seeker Operations Executive Director Molly Schaeffer. “Our work on this humanitarian relief center is far from over, and our teams and community partners remain committed to serving everyone who comes into our care; but today’s announcement is a testament to the tremendous work that has been done to date as we remain steadfastly focused on our mission!”

 

The planned transfer of intake functions from The Roosevelt Hotel to other areas within the system, alongside the planned closures of 53 other emergency shelter sites by June, reflects the dedicated efforts of the Adams administration to address an international crisis and to supporting asylum seekers as they pursue their path towards the American Dream. These efforts have included expanding work authorization and pathways to self-sufficiency— leading to more than 84 percent of adults eligible for work authorization receiving or applying for it in the city’s system — as well as the administration’s successful asylum seeker management strategies — including reticketing, case management, and 30- and 60-day notices — that have resulted in sustained decreases in the number of migrants seeking shelter and care from the city, now at its lowest figure since the height of the humanitarian response. There are currently fewer than 45,000 migrants in the city’s care, down from a high of 69,000 in January of 2024 and out of the more than 232,000 that have arrived in New York City seeking city services since the spring of 2022. The city’s efforts have directly resulted in approximately 24,000 fewer asylum seekers in the city’s care on a day-to-day basis, and allowed the Adams administration to announce multiple site closures in December 2024,  January 2025, and February 2025.

 

Based in midtown Manhattan, The Roosevelt Hotel Arrival Center served upwards of 173,000 migrants at a single time upon their arrivals as part of the unprecedented influx of asylum seekers to New York City; at the peak of the crisis receiving in excess of 4,000 asylum seekers each week.

 

Since the first asylum seekers arrived in the spring of 2022, New York City has continued to focus on the support needed to help migrants take their next steps towards self-sufficiency. The city’s Asylum Application Help Center — a first-in-the-nation entity — has helped complete more than 98,000 applications for work authorization, temporary protected status, and asylum. The work of the New York City Department of Small Business Services and workforce development teams have connected this population to hundreds of job opportunities, and the administration’s case management and resettlement teams — in conjunction with teams across multiple city agencies — continue to find creative ways to assist recent arrivals through direct outreach, resource fairs, and onsite English as a Second Language courses at shelters, to name a few examples. 

 

Over 84 percent of eligible adults in the city’s care either have or have applied for work authorization thanks to the Adams administration’s efforts. The city has also purchased more than 53,200 tickets to help migrants reach their preferred destinations and help reduce long-term costs for New York City taxpayers. Additionally, staff have conducted over 873,000 case management sessions with migrants, dedicated to helping them identify self-sufficient pathways out of city shelter, in addition to implementing the city’s 30- and 60-day notice policies.  

 

As a result, more than 188,000 migrants who requested services from the city in the last three years have taken the next steps in their journeys towards self-sufficiency. Since intensive case management services began in October 2023, 40 percent more families with children in humanitarian relief centers each week have taken their next steps. Additionally, Mayor Adams successfully reduced the city’s asylum seeker spending over Fiscal Years 2024 through Fiscal Year 2026 by more than $5.2 billion.