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DoorDash New York City worker settlement

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2026-09-23 16:56 UTC → 2026-09-23 20:29 UTC · added ~~removed~~

DoorDash has agreed to a $131.5 million settlement to resolve allegations of underpaying delivery workers in New York City. The settlement, announced by Mayor Zohran ~~Mamdani,~~ Mamdani and the Department of Consumer and Worker Protection, is noted as the largest worker settlement in the city’s history and the largest involving food delivery workers in the United States. The funds are intended for more than 260,000 workers who faced issues including underpayment, late payments, or non-payment. The financial breakdown includes approximately $115 million in direct relief for workers and roughly $16 million in civil penalties and other costs to the city. A significant portion of the funds, roughly $83 million, addresses disputes regarding how DoorDash calculated pay for ‘on-call time’—periods when workers are logged into the app but not actively delivering—which must be included under city minimum-pay rules. DoorDash attributed the discrepancies to technical bugs and complex delivery scenarios, such as multi-stop trips or deliveries crossing city boundaries. In a statement regarding the errors, the company said, ‘Simply put, we screwed up,’ and expressed regret toward its Dashers. To prevent future occurrences, the company is required to implement a new monitoring system to ensure compliance with local pay laws and must provide monthly pay data to the Department of Consumer and Worker Protection for the next three years. The company has also agreed to adopt the city’s calculation method for worker compensation moving forward.

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