DoorDash Settles NYC Pay Dispute for $131.5 Million
DoorDash has agreed to a $131.5 million settlement with New York City over allegations that it underpaid or delayed payments to couriers, affecting approximately 264,000 drivers. The city's Department of Consumer and Worker Protection (DCWP) found systematic violations of minimum wage rules for delivery workers established in 2023. DoorDash admitted technical errors caused the issues but emphasized they were unintentional. The settlement includes $12.3 million to be distributed directly to affected couriers, with a median payout of about $48 per person and at least $10 guaranteed regardless of underpayment amount. An additional $83 million addresses discrepancies in calculating pay for time spent logged into the app but not delivering. DoorDash will also pay $16.7 million in fines as part of the agreement. The company has fixed technical issues causing payment errors and strengthened its compliance program, including submitting monthly data reports to DCWP for three years. The settlement is described by officials as one of the largest involving food delivery workers in U.S. history.
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