DoorDash Agrees To Pay $131.5 Million To New York City For Underpaying And Late-Paying Delivery Workers
DoorDash agreed to pay $131.5 million to settle a New York City Department of Consumer and Worker Protection investigation that found the company underpaid and late-paid its delivery workers, the largest settlement of its kind in New York City history.
Mayor Zohran Mamdani announced the deal Tuesday at City Hall. DoorDash's statement was unusually direct: "Simply put, we screwed up. Our mistakes meant some Dashers were underpaid or paid late. While these mistakes weren't intentional, that doesn't make them okay."
The settlement breaks down into three pieces: a $16.7 million fine, more than $83 million to resolve a dispute over how to calculate pay for workers logged into the app and on-call but not actively making deliveries, and $12.3 million for payments that arrived late or never at all.
DoorDash attributed many errors to deliveries that crossed city boundaries, had multiple stops, were partially fulfilled or canceled, suffered technical bugs or missing banking information.
The city's investigation began under the previous administration and was one of the first major actions under Mamdani.
The Department of Consumer and Worker Protection had separately accused DoorDash and Uber Eats in January of costing delivery workers more than $550 million combined through changes to their tipping systems, average tips dropped from $3.66 per order to 76 cents following a December 2023 system change. Uber Eats has not settled.
