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BusinessQuiet 3d · day 3

NYC wins $131.5M DoorDash settlement for underpaid delivery workers

City labor enforcement action, largest of its kind, compensates nearly 260,000 workers shortchanged on wages since 2022.

newest coverage 2d agosummary written 2d ago2 pieces NewswiresGoogle News

What to know

  • NYC secured a $131.5 million settlement with DoorDash for underpaying nearly 260,000 delivery workers since at least 2022, the largest food delivery worker settlement ever reached in the US.
  • Over $115 million will go directly to affected workers, who are expected to receive compensation equivalent to 200% of their initial underpayment.
  • DoorDash acknowledged the payment failures but characterized them as unintentional operational mistakes rather than deliberate wage theft.
  • The settlement includes DoorDash paying over $16 million in civil penalties and obligations to ensure compliance with NYC's $22.13 minimum pay rate law for delivery workers.

“No corporation is above the law, and this administration will keep fighting until every worker gets the pay and protections they deserve.”

Mayor Zohran Mamdani, NYC Mayor · Truthout ↗

Mayor Zohran Mamdani NYC MayorSamuel Levine DCWP CommissionerDoorDash Food delivery platform

NYC wins $131.5M DoorDash settlement for underpaid delivery workers
truthout.org

How it unfolded 1 development · click the chart to see its coverage articles

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Sep 23yesterdaynow · 9:29 AM ET
  1. 1

    DoorDash acknowledges underpayment but calls it unintentional

    DoorDash spokesperson Samantha Ramirez states the company made mistakes in wage payments but that they were not deliberate. She says less than 1% of all payments were affected, with 65% of impacted workers underpaid by $1 or less.

    “Simply put, we screwed up. Our mistakes meant some Dashers were underpaid or paid late.”
    — Samantha Ramirez
  2. background

    NYC announces $131.5M DoorDash settlement — Mayor Zohran Mamdani and DCWP Commissioner Samuel Levine announce the settlement following a years-long investigation that found DoorDash failed to pay thousands of workers for all time worked and failed to pay thousands more on time. Over $115 million will go directly to workers, with DoorDash paying an additional $16 million in civil penalties.

  3. background

    DoorDash increases hourly pay but maintains violations — Although DoorDash increased hourly pay for its workers in December 2023, the company still found ways to exclude some delivery workers from receiving the minimum hourly wage required by city law.

  4. background

    DoorDash underpayment of delivery workers begins — DoorDash begins underpaying delivery workers, with the practice affecting more than 260,000 workers through at least 2022 according to city findings.