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DoorDash to pay $131.5M to settle NYC delivery worker pay claims
DoorDash has agreed to a $131.5 million settlement with New York City to resolve investigations into the underpayment of delivery workers. The agreement, announced by Mayor Zohran Mamdani and the Department of Consumer and Worker Protection, is described as the largest worker settlement in the city's history.
More than $115 million of the total will be distributed to approximately 260,000 to 264,000 delivery workers. The settlement addresses issues where workers were underpaid, not paid, or received payments late. A significant portion of the funds—roughly $83 million—resolves a dispute regarding how the company calculated pay for “on-call time,” the period when workers are logged into the app but not actively delivering.
In addition to worker relief, DoorDash will pay approximately $16 million in civil penalties and administrative costs. The company admitted to errors, stating, “Simply put, we screwed up,” and attributed the issues to technical bugs and complex delivery scenarios. As part of the deal, DoorDash must submit to a three-year compliance monitoring program, which includes providing detailed monthly pay data to city regulators to ensure adherence to New York City's minimum pay laws.
Entities
Department of Consumer and Worker Protection · DoorDash · New York City · Tony Xu · Zohran Mamdani
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 23 SOURCES] DoorDash will pay $131.5 million to settle claims of underpaying delivery workers in New York City. vinnews.com · www.troyrecord.com · www.it-boltwise.de · queenslatino.com · www.ntd.com · +18 more
- [● 23 SOURCES] More than 260,000 workers were underpaid, not paid, or paid late. vinnews.com · www.troyrecord.com · www.it-boltwise.de · queenslatino.com · www.ntd.com · +18 more
- [● 19 SOURCES] The agreement requires DoorDash to submit to a new monitoring system for pay law compliance. vinnews.com · www.troyrecord.com · triblive.com · vincypowanews.com · octobergallery.com · +14 more
- [● 14 SOURCES] The settlement is the largest worker settlement in New York City history. vinnews.com · www.troyrecord.com · www.amny.com · uticaphoenix.net · triblive.com · +9 more
- [● 6 SOURCES] Payment errors were caused by technical bugs or complex delivery situations. vinnews.com · www.troyrecord.com · www.ntd.com · triblive.com · vincypowanews.com · +1 more
- [● 17 SOURCES] DoorDash will pay approximately $16 million in civil penalties and other costs to the city. vinnews.com · www.troyrecord.com · www.it-boltwise.de · queenslatino.com · www.ntd.com · +12 more
- [● 10 SOURCES] DoorDash admitted to errors regarding delivery worker payments. vinnews.com · www.troyrecord.com · triblive.com · vincypowanews.com · octobergallery.com · +5 more
- [● 4 SOURCES] About $83 million of the settlement resolves a dispute over how DoorDash calculated pay for on-call time. www.etailment.de · www.moncloa.com · www.ntd.com · laopinion.com