NEW YORK — DoorDash has agreed to pay $131.5 million to settle claims that it underpaid delivery workers in New York City.
Mayor Zohran Mamdani announced the settlement this week. City officials describe the agreement as the largest worker settlement in city history.
The settlement also requires the company to submit to a new monitoring system to ensure compliance with city’s delivery worker pay laws and to pay about $16 million in civil penalties and other costs to the city.
San Francisco-based DoorDash admitted errors, saying in a statement, “Simply put, we screwed up. While these mistakes weren’t intentional, that doesn’t make them okay. 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.
Most of the money from the settlement will be returned to more than 260,000 workers who were underpaid, not paid or paid late for deliveries by DoorDash, according to the mayor’s office.
“When a worker earns a wage, they deserve to be paid that wage – not tomorrow, not after a lawsuit, but on time and in full,” Mamdani said in a statement. “
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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