It feels like a lifetime ago, but back between 2017 and 2019, if you ordered a burrito in Illinois and left a nice tip for your driver, there’s a good chance that money didn't actually function as a "bonus." Instead, it basically just saved DoorDash some money. Honestly, it's one of those things that sounds like a glitch until you realize it was the actual business model.
Illinois Attorney General Kwame Raoul recently closed the book on this with an $11.25 million settlement.
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The gist of the lawsuit was pretty simple but the mechanics were messy. The state alleged that DoorDash used a "deceptive" pay model that essentially used customer tips to subsidize the base pay they promised their workers. You thought you were adding $5 on top of their pay. In reality, DoorDash might have just reduced their own contribution by $5.
Why the DoorDash Settlement Happened
For a couple of years, DoorDash used something called a "Guaranteed Pay Model." Here is how it worked in the real world: DoorDash would tell a driver, "Hey, if you take this delivery, we guarantee you'll make $10."
If you, the customer, tipped $0, DoorDash paid the driver the full $10.
But if you tipped $5? DoorDash would only pay the driver $5, and use your tip to reach that $10 "guaranteed" total.
Essentially, the company was using your generosity to lower its own labor costs. Attorney General Raoul’s office argued this was a clear violation of the Illinois Consumer Fraud and Deceptive Business Practices Act. They contended that customers were misled into thinking tips were an extra reward, when they were actually just a subsidy for the corporation.
Who is Getting Paid?
This isn't just a fine that disappears into the state's general fund. Most of that $11.25 million is earmarked for the people who actually did the work.
We are talking about roughly 79,262 delivery drivers (or "Dashers") who worked in Illinois during that window from July 2017 to September 2019. If you were one of them, you’ve probably already heard about this, but the clock is ticking on the logistics.
The settlement fund is being managed by a third-party administrator called Atticus Administration.
The Eligibility Breakdown
- The Timeframe: You must have completed deliveries in Illinois between July 2017 and September 2019.
- The Model: You had to be paid under that specific "Pay Guarantee Model."
- The Catch: Not every single driver gets a check. Only those whose tips were actually used to offset DoorDash's payment obligations are eligible.
- The Minimum: Every eligible claimant is guaranteed at least $2.00, plus a proportional share of the rest of the fund based on how many of their tips were "diverted."
A Pattern of Legal Headaches
Illinois isn't the only place where DoorDash has faced the music for this specific practice. They settled a similar case in Washington, D.C. a few years ago, and more recently, New York Attorney General Letitia James secured a $16.75 million settlement for nearly identical reasons.
It’s also worth noting that Chicago—independent of the state—just reached its own $18 million settlement with DoorDash in late 2025. That one was even broader, covering things like "ghost" restaurant listings and a $1.50 "Chicago Fee" that people thought went to the city but actually went into DoorDash's pockets.
Basically, the legal walls have been closing in on these gig-economy pay structures for a while.
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What Changes for You Now?
DoorDash actually stopped using this specific pay model back in late 2019 after a massive public outcry and a particularly scathing New York Times report. But the settlement makes the change permanent and legally binding.
Under the terms agreed upon with Attorney General Raoul, DoorDash has to:
- Stop the Offset: They are legally prohibited from using tips to reduce the base pay they owe drivers.
- Radical Transparency: They have to show a clear breakdown to both the driver and the customer of what is "Base Pay" versus what is "Tip."
- Audit Compliance: They have to maintain these standards or face further litigation.
Honestly, it's kinda wild it took this long to get the money back into the hands of the workers, but the legal system moves at the speed of a snail.
Actionable Steps for Drivers
If you think you were a Dasher during this period, you should have received an email or a postcard with a unique ID.
- Check the Portal: Visit the official settlement website (ildoordashsettlement.com).
- File Your Claim: The deadline to submit a claim is February 10, 2025.
- Choose Your Payment: You can get paid via Zelle, PayPal, Venmo, or a physical check.
- Watch the Calendar: Payments are expected to start rolling out shortly after March 4, 2025.
For consumers, the takeaway is a bit more nuanced. While the "tip-skimming" era of 2017 is over, the gig economy still relies heavily on tips to make the math work for drivers. Always check your receipt for "service fees" versus "delivery fees," as these often go to the company, not the person at your door.
Moving forward, keep an eye on your email for notices regarding the separate Chicago settlement if you live in the city, as that will involve $4 million in user credits starting in late January 2026.