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Drizly, a now-defunct alcohol delivery platform, reached a $4 million settlement with the State of New York on Tuesday, Dec. 17, for failing to ensure that delivery workers received their rightful tips.
According to New York Attorney General Leitita James, Drizly encouraged customers to tip delivery workers but sent the funds to liquor store owners instead. Store owners were responsible for distributing the tips, but in many cases, workers did not receive the money they earned.
The investigation also revealed that Drizly misled customers by encouraging them to tip without clearly disclosing that tips wouldn’t go directly to the workers.
More than 8,300 delivery workers across New York, including those on Long Island, in the Hudson Valley, and in the Capital Region, will be eligible to receive restitution from the $4 million settlement.
“So many delivery workers work paycheck to paycheck and denying them their hard-earned tips could mean the difference between making ends meet and not being able to put food on the table,” James said.
“Now, we are finally returning this money to those who actually deserve it and who customers intended it would go to.”
The settlement includes an additional $200,000 to fund a settlement administrator who will oversee the distribution of the restitution to affected workers.
Drizly, which began operations in New York in 2013, was shut down in March 2024 after Uber consolidated its food and alcohol delivery services into Uber Eats. At the time, over 80 percent of Drizly orders were delivered by store employees.
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