DoorDash to pay $131.5 million to New York delivery workers
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DoorDash will pay $131.5 million to over 260,000 delivery workers in New York City after officials determined the company failed to fully compensate them.
The settlement resolves allegations that some couriers were underpaid, not paid at all, or received late payments. DoorDash admitted to making mistakes, stating that the problems stemmed from technical bugs and complicated trip situations, such as deliveries crossing city boundaries.
The city considers this the largest worker settlement in its history, with approximately $16 million of the funds designated for civil penalties and city costs. Missing or delayed earnings can create hardship for workers who rely on the income for necessities like groceries and rent. DoorDash also agreed to pay nearly $17 million in a separate New York case involving misused customer tips.
As part of the agreement, DoorDash will be monitored to ensure future compliance with New York City delivery worker pay laws, helping to identify and correct errors in automated payment systems. Mayor Zohran Mamdani said the agreement ensures workers receive wages “on time and in full.”
