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SOURCE: blackenterprise.com
DoorDash has agreed to pay $131.5 million after a New York City investigation found that more than 260,000 delivery workers were underpaid, unpaid, or paid late, AP News reports.
Mayor Zohran Mamdani and the Department of Consumer and Worker Protection announced the settlement on Sept. 22. City officials said it is the largest worker settlement in New York City history and the largest settlement involving food delivery workers secured by a U.S. municipality.
More than $115 million will go directly to affected workers, while DoorDash will pay more than $16 million in civil penalties and costs. Workers do not need to file claims or submit evidence because the city has identified eligible recipients through its analysis of DoorDash records.
The investigation examined 152 million payments and 110 million hours of work. City officials said DoorDash failed to properly account for certain categories of work when calculating compensation, including some canceled trips, deliveries that crossed city limits, and time workers spent logged into the platform between deliveries.
New York City requires apps that provide restaurant or grocery delivery services to pay workers at least $22.13 per hour, excluding tips, for qualifying time spent preparing for and making deliveries.
“When a worker earns a wage, they deserve to be paid that wage — not tomorrow, not after a lawsuit, but on time and in full,” Mamdani said in announcing the settlement.
DoorDash acknowledged making errors involving missing and delayed payments and apologized to affected workers. The company said technical problems and complicated delivery situations contributed to some of the errors.
DoorDash said $12.3 million of the settlement covers workers who were underpaid or paid late, while more than $83 million resolves a disagreement with the city over how to calculate compensation for time workers spend online between deliveries.
Approximately 264,000 workers are expected to receive payments. DoorDash said the median payment will be about $48, while city officials said more than 27,000 workers will receive more than $1,000, and more than 4,000 will receive more than $5,000.
The agreement also subjects DoorDash to three years of additional oversight. The company must provide detailed monthly data to the city to monitor compliance with rules governing minimum pay and other delivery worker protections.
Workers Justice Project and the Workers’ Algorithm Observatory are also developing technology that will allow delivery workers to record information from the DoorDash app and share data with city regulators to help monitor compliance.
The settlement follows another enforcement action involving DoorDash in New York. In 2025, the company agreed to pay nearly $17 million to resolve allegations that it used customer tips to subsidize guaranteed worker pay rather than allowing workers to receive those tips on top of their guaranteed compensation.
