DoorDash will pay $131.5 million to New York City delivery workers
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DoorDash agreed to pay $131.5 million to settle an investigation by New York City’s Department of Consumer and Worker Protection regarding its payment of delivery workers, known as Dashers.
The company admitted it made mistakes that led to some workers receiving incorrect or delayed payments. DoorDash initially calculated pay for time spent waiting for orders using a method it considered fair, but it will now use the city’s method and issue payments based on that calculation.
The settlement will provide payments to 264,000 Dashers. DoorDash reported it failed to pay approximately $6.6 million in compensation and paid an additional $5.7 million late. Most affected Dashers, 65%, received underpayments of less than $1, though the average payment owed was $7.70, with a median payment around $48. DoorDash will ensure each impacted Dasher receives at least $10, even if the original underpayment was smaller.
The majority of the settlement, $83 million, addresses a dispute over compensation for “on-call time,” the period workers spend logged into the app awaiting assignments.
