$4 Million Drizly Settlement With New York Attorney General’s Office Recovers Tips Withheld from Delivery Workers

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Drizly has agreed to a $4 million settlement with the Office of the New York State Attorney General (OAG), which found that the now-defunct alcohol delivery service failed to ensure delivery workers received their rightfully earned tips. 

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The official website for the Drizly settlement can be found at NYDrizlySettlement.com.

The $4 million restitution fund will be distributed among at least 8,385 current and former delivery workers who made deliveries for the Uber-owned Drizly platform throughout New York state from January 1, 2018 through August 2023, an assurance of discontinuance states.

To receive payment from the settlement, covered individuals must submit a valid claim form by July 15, 2025.

You can file a Drizly claim form online by heading to this page and entering the unique ID and PIN located in the settlement notice you may have received. If you did not receive a settlement notice or lost yours, you can still begin the claims process by clicking here.

According to an OAG press release, Drizly actively encouraged customers to leave tips for delivery workers, including an automatic 10 percent tip at checkout, without adequately disclosing that the full tip amount would not go to the individual who made the delivery. Instead, Drizly sent tips to liquor store owners who used the platform to decide how the funds would be distributed, the press release from New York Attorney General Letitia James’ office says.

The OAG’s investigation determined that Drizly urged store owners to split tips among all employees rather than give the funds directly to the workers who had earned them, the press release says. Per the OAG, New York law does not allow tip pooling for liquor store employees.

“Despite this, Drizly continued to encourage tip pooling and did not implement any mechanism to ensure the delivery workers received the money intended for them,” the press release states. “As a result, many delivery workers did not receive all of the tips they earned.”

The OAG alleged that Drizly violated state law by deceiving consumers about where their tips would go and misleading stores about the legality of tip pooling.

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