DoorDash has agreed to a $131.5 million settlement with New York City to resolve allegations that the company underpaid or delayed payments to its delivery workers between April 2022 and June 2026, according to multiple reports.
Key Takeaways
DoorDash has agreed to pay $131.5 million to settle claims that it underpaid or delayed payments to its delivery workers in New York City between April 2022 and June 2026. The settlement includes compensation for over 264,000 workers and fines to the city.
- DoorDash reaches $131.5 million settlement with NYC
- Over 264,000 delivery workers affected by underpayment or late payments
- Settlement includes $83 million for on-call time pay disputes
- DoorDash admits mistakes but insists its approach was legal
Source Claims Check
1 Difference Found| Claim | Status | Reason | |
|---|---|---|---|
| Number Of Affected Workers | 1 Difference | CBS reports different numbers for affected workers | ▼ |
| Settlement Amount | Broad Agreement | $131.5 million settlement with NYC over worker pay | |
| On-call Time Pay | Broad Agreement | $83 million to resolve on-call time pay disputes |
The settlement includes $12.3 million for over 264,000 delivery workers who were underpaid or paid late, as well as more than $83 million to resolve disputes over how to calculate pay for time spent on-call between deliveries. The city's Department of Consumer and Worker Protection will receive $16.7 million in fines as part of the agreement.
DoorDash admitted that it made errors but maintained that its approach was "fair, practical, and legal." In a statement, the company said: "We screwed up, and our mistakes meant some NYC Dashers were underpaid or paid late. We're making things right by paying every Dasher what they're owed and fixing what caused this."
The settlement also requires DoorDash to submit monthly pay data to the city for three years to ensure compliance with delivery worker pay laws. The city will audit this data, and two worker advocacy groups will develop software to help drivers share their trip and earnings data with the agency.
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