DoorDash has agreed to a $131.5 million settlement after New York City's Department of Consumer and Worker Protection found it underpaid more than 260,000 delivery workers, including some who were paid late or never paid at all. Of the total, $115.4 million goes back to workers, while the rest covers about $11.3 million in civil penalties, $4.3 million for a worker-driven compliance program and roughly $468,000 to run the payouts. DoorDash says the median payout will be around $48, with the average missed payment at just $7.70 and 65% of affected workers shorted by $1 or less, though Mayor Zohran Mamdani said upward of 27,000 workers will clear $1,000 and more than 4,000 will top $5,000. City officials called it the largest worker settlement in New York City history and the largest involving food delivery workers anywhere in the U.S., and the tab could still grow because DoorDash is still calculating what it owes for work done between June 29 and Nov. 29, with any back pay from that stretch carrying an extra 13.79% civil penalty. The agency found DoorDash excluded several categories of trip time and on-call time from the hours it paid for under a city law requiring app-based delivery workers to earn at least $22.13 an hour before tips, and DoorDash said in a statement, "Simply put, we screwed up," while insisting the mistakes were not intentional.
DoorDash, Inc. Class A Common StockDoorDash agreed to a $131.5M settlement with NYC for underpaying 260,000+ delivery workers under the city's minimum-pay law, with potential additional back pay and penalties still accruing.
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