Have you been keeping up with our coverage on settlements such as the Go Wireless commission lawsuit or the MERS Missouri Goodwill Industries data breach? Sparrow continues to guide you through intricate class action claims. Today’s spotlight shines on a significant case involving Drizly, a once-popular alcohol delivery service recently shut down by Uber. Following an investigation by New York Attorney General Letitia James, Drizly agreed to a $4 million settlement due to allegations it withheld tips intended for its delivery drivers.
If you’ve worked as a Drizly delivery driver at any of the more than 2,400 liquor stores in New York using their platform, this settlement could directly impact you. The investigation revealed that while Drizly promoted tipping, even automatically suggesting a 10% tip at checkout, the tips went to store owners instead of delivery workers. With more than 8,300 delivery workers affected, this settlement offers an important opportunity for restitution.
In this comprehensive guide, we’ll explore the background of the case, detail who qualifies, break down potential payouts, and outline critical filing deadlines. Sparrow stands ready to simplify your claim process, ensuring you swiftly and easily receive the compensation you deserve.
Behind the scenes of the withheld tips controversy
Drizly was established in New York in 2013, quickly gaining popularity as a convenient alcohol delivery platform. Customers appreciated its ease of use and prompt service, especially during periods of increased demand, such as holidays or adverse weather conditions. In 2021, Drizly was acquired by Uber, and by March 2024, Uber shut down Drizly to consolidate its alcohol delivery services into its Uber Eats platform.
However, beneath the convenience and popularity, significant issues began to surface regarding Drizly’s handling of tips intended for delivery drivers. New York Attorney General Letitia James launched an investigation into Drizly’s tipping practices, discovering alarming discrepancies. Drizly encouraged customers to tip generously, even automatically suggesting a 10% tip at checkout. Despite this, tips were not directly transferred to delivery workers.
Instead, the collected tips were directed to liquor store owners, who then had discretion over their distribution to drivers. This practice led to many delivery workers receiving significantly less than customers intended. Over 8,300 delivery drivers employed by approximately 2,453 liquor stores across New York state were impacted by these practices. The Attorney General’s investigation revealed systemic failures in ensuring tips reached their rightful recipients.
Facing these serious allegations, Drizly chose to settle, agreeing to pay $4 million in restitution to affected workers and an additional $200,000 to cover administrative costs related to distributing these funds. This settlement aims to rectify the financial harm caused to workers and underscores the importance of fairness and transparency in tipping practices.
Who’s Eligible for the Settlement
You may qualify for compensation if:
- You worked as a delivery driver at one of the 2,453 liquor stores in New York using Drizly’s platform.
- You delivered alcohol or other products via Drizly between 2013 and its closure in March 2024.
Check your eligibility precisely through the official settlement website.
What You Can Get from the Settlement
Eligible delivery workers will receive compensation from the $4 million settlement fund. Individual payout amounts will vary based on:
- Length of employment as a Drizly delivery driver
- Total amount of withheld tips
- Number of eligible claimants who submit valid claims
Settlement administrators will calculate fair, individualized payments to each worker.
Required Documentation
No specific proof of purchase is necessary. However, verifying your employment as a Drizly delivery driver through available records or through the settlement website will be required.
How to File a Claim with Sparrow
Simplify your claim process with Sparrow:
- Visit the official settlement website NYDrizlySettlement.com.
- Verify your employment details using provided forms or online prompts.
- Head to Sparrow’s Claim Assistance page and complete our straightforward intake form.
- Let Sparrow handle the rest—we ensure your claim is accurate and timely.
Sparrow offers ongoing, clear updates throughout your claim process.
Important Deadlines
| Action | Deadline |
|---|---|
| Submit your claim | July 15, 2025 |
| Opt out or object | June 6, 2025 |
| Final approval hearing | N/A (settlement approved administratively) |
Mark these dates to secure your settlement funds.
Case Snapshot
- Settlement Amount: $4 million
- Case Name: Office of the New York State Attorney General’s Settlement with Drizly LLC, Case No. 24-080
- Settlement Website: NYDrizlySettlement.com
- Claims Administrator: Drizly Restitution Settlement, c/o Simpluris, P.O. Box 26170, Santa Ana, CA 92799
Email: info@NYDrizlySettlement.com | Phone: 866-675-2754
Conclusion
The Drizly class action settlement highlights the importance of transparency and fairness in employee compensation, especially when tips are concerned. Tips often significantly supplement workers’ income, particularly in delivery roles, and withholding or misdirecting these tips can cause substantial financial distress. Drizly’s agreement to pay $4 million underscores the accountability expected from companies in handling employee compensation ethically.
If you’re one of the thousands of affected Drizly delivery workers, now is your opportunity to claim what you rightfully earned. Don’t navigate this alone; Sparrow is here to ensure your claim is handled smoothly, quickly, and successfully.
Start your Drizly claim today with Sparrow. Stay updated on more class actions and labor rights settlements by visiting our Class Action News hub—because protecting your earned wages and tips is non-negotiable.