DoorDash to pay $131.5 million to New York City delivery workers
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DoorDash will send $131.5 million to over 260,000 delivery workers in New York City to settle a dispute over pay practices.
The company admitted it underpaid or paid late to its Dashers between April 2022 and June 2026, though it stated the errors were not intentional. More than $115 million of the settlement will go directly to the workers, with the rest covering penalties and costs.
The settlement resolves a disagreement about how DoorDash calculated pay for time workers spent logged into the app but not actively delivering orders. While DoorDash previously maintained its method was fair, it will now use the city’s method for calculating this time. The company also acknowledged that technical issues and complex delivery situations, like trips crossing city lines, contributed to the payment errors. DoorDash has corrected the technical problems and improved its banking information validation process to prevent future errors.
Workers will receive payments automatically without filing claims, with the average payment around $48 and a minimum of $10 even for small underpayments. New York City will monitor DoorDash’s compliance with payment rules for the next three years.
