NEW YORK — DoorDash has agreed to pay $131.5 million to settle claims that it underpaid or failed to pay 264,000 delivery workers in New York City.
Mayor Zohran Mamdani announced the agreement at a September 22 press conference at City Hall, hailing the agreement as the largest settlement ever secured by food delivery workers.
“City Hall will not sit idly by while a megacorporation that made nearly a billion dollars in profits last year rips off the working people who keep our city moving,” Mamdani said.
The settlement also requires DoorDash to submit to a new monitoring system to ensure compliance with the city’s delivery worker pay laws, and to pay the city about $16 million in civil penalties and other costs.
San Francisco-based DoorDash admitted errors, saying in a statement, “Simply put, we screwed up." The company said the mistakes weren’t intentional. "We pride ourselves on operational excellence at DoorDash – and this was not excellent, nor was it acceptable. Dashers should be paid in full, on time, every time. We are sorry to the Dashers we let down.”
DoorDash said many of the errors in payment were caused by “technical bugs or happened in complicated situations,” such as deliveries that went outside city boundaries, had multiple pickup or drop-off spots or included deliveries that were cancelled or partially completed.
DoorDash said that the median payment to workers amounts to around $48. City officials calculate that some 700 workers are owed more than $10,000 each, and that at least 27,000 workers are owed more than $1,000.
DoorDash last year agreed to pay nearly $17 million to settle claims it unfairly used customer tips to subsidize the wages of its delivery workers in New York, rather than allowing drivers to keep the tips on top of their guaranteed pay.
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