DoorDash pays $179 million over New York delivery worker wages
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DoorDash agreed to pay $131.5 million (about 179.3 billion Korean won) to settle a wage dispute with delivery workers in New York City.
The New York City Department of Consumer and Worker Protection discovered the underpayments after analyzing 152 million payment records and 110 million hours of labor data from DoorDash. This analysis revealed that over 264,000 delivery workers experienced wage theft or delayed payments.
The dispute centered on how New York City calculates minimum pay for delivery workers, specifically including the time workers spend waiting for orders. New York City requires that this “wait time” be factored into minimum wage calculations, a practice DoorDash previously disputed but ultimately accepted as part of the settlement. Over $83 million of the settlement will address issues related to the minimum wage calculation.
The agreement provides direct payments to affected workers, with some receiving up to $3,000 depending on the amount and timing of underpaid wages. DoorDash stated the issues stemmed from technical errors and complexities in the delivery process, and that it has since corrected those technical issues.
New York City’s ability to investigate and resolve the issue was made possible by a 2023 law requiring delivery platforms to submit data, allowing the city to identify and compensate a large number of workers without individual claims.
