DoorDash agrees to pay $131.5 million to New York delivery workers
Summary and headline written by AI from the source article. How we work
New York City official Zohran Mamdani announced a $131.5 million settlement with the delivery app DoorDash to compensate workers for systematic underpayments and late payments.
The agreement follows an investigation by the Department of Consumer and Worker Protection (DCWP), which analyzed 152 million payments and 110 million hours of work. The agency found that the company omitted work time when calculating wages between April 2022 and June 2024.
The settlement will distribute over $115 million directly to approximately 260,000 affected workers over nearly two years. Workers will receive a compensation amount equivalent to approximately 200% of the amount owed to them. For instance, a worker owed $1,000 who received no payment will receive $3,000, while a worker owed $1,000 who received a late payment will receive $2,000. Many of the affected workers are immigrants.
To ensure future compliance, DoorDash must submit monthly data for three years regarding minimum pay, maximum delivery distances, and trip information. The agreement also establishes a worker-led monitoring program to help the city identify and address violations quickly. The DCWP will send personalized emails to eligible workers in late October to arrange for electronic payments or mailed checks. A second round of payments will begin in early 2027 for a small group of workers who use DashLink.
