LANSING, Mich. (Michigan News Source) — DoorDash has agreed to pay nearly $17 million to settle claims that it misled customers and delivery workers by using driver tips to subsidize base pay, New York Attorney General Letitia James announced on February 24.

Between 2017 and 2019, the San Francisco-based delivery company allegedly diverted tips meant for its workers—called Dashers—into their base wages instead of paying them in full, according to court filings.

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“Customers had no reason to believe these tips were being used by DoorDash to reduce its costs,”  James said during a press conference. “They knew it wasn’t right and did it anyway.”

DoorDash, which changed its pay model in 2019, defended its past practices but said it was pleased to resolve the case.

“While we believe that our practices properly represented how Dashers were paid during this period, we are pleased to have resolved this years-old matter,” a company spokesperson told USA TODAY.

As part of the settlement, DoorDash is required to give drivers a transparent breakdown of their pay before they accept delivery requests. The attorney general’s office plans to release instructions in the coming weeks on how eligible Dashers can claim their share of the payout.