{"id":353548,"date":"2026-09-22T14:10:10","date_gmt":"2026-09-22T14:10:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/353548\/"},"modified":"2026-09-22T14:10:10","modified_gmt":"2026-09-22T14:10:10","slug":"doordash-admits-pay-errors-agrees-to-nyc-settlement-payout","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/353548\/","title":{"rendered":"DoorDash Admits Pay Errors, Agrees to NYC Settlement Payout"},"content":{"rendered":"

DoorDash is paying millions of dollars to New York City delivery workers<\/a> \u2014 and admitting that it messed up.<\/p>\n

The delivery company will pay $131.5 million to settle the city’s investigation into its pay practices, DoorDash said on Tuesday.<\/p>\n

New York City’s Department of Consumer and Worker Protection had been investigating whether DoorDash complied with a 2023 minimum pay law for delivery workers.<\/p>\n

“Simply put, we screwed up,” DoorDash said in a statement<\/a>. “Our mistakes meant some Dashers were underpaid or paid late.” The pay mistakes were not intentional, DoorDash said.<\/p>\n

The settlement marks another win for New York City as it takes on apps including Uber Eats and DoorDash.<\/p>\n

In January, the City started enforcing a law requiring the apps to offer customers the option to tip delivery workers<\/a> when ordering food, resulting in millions more in tips for delivery workers. Two years earlier, the apps had moved the tipping option to appear only after a delivery arrived.<\/p>\n

Mayor Zohran Mamdani<\/a> said in July that the tip crackdown was “only the beginning.”<\/p>\n

As a result of Tuesday’s settlement, 264,000 Dashers will get a payment. DoorDash never paid about $6.6 million worth of compensation, the company said, while it paid another $5.7 million “days or in some cases, weeks late,” it said.<\/p>\n

The average payment owed to Dashers was $7.70, DoorDash said. Most workers who were affected \u2014 65% \u2014 were underpaid by less than $1, the company added. The median payment will be around $48.<\/p>\n

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Under the settlement, Dashers who were underpaid will get “a minimum of $10, even if they were underpaid by less than that,” DoorDash said.<\/p>\n

A majority of the settlement \u2014 $83 million \u2014 will resolve a disagreement about “on-call time,” or the minutes that delivery workers spend on the app waiting to accept an order. New York City law requires companies to pay workers for this time.<\/p>\n

DoorDash said that it paid workers for this time using a calculation that it said was “fair, practical, and legal.”<\/p>\n

“But rather than spend years fighting over whose method was right, we chose to pay Dashers sooner and use the City’s method going forward,” the company said.<\/p>\n

Do you have a story idea about DoorDash or another delivery service? Contact this reporter at abitter@businessinsider.com<\/a> or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here’s our guide to sharing information securely.<\/p>\n","protected":false},"excerpt":{"rendered":"DoorDash is paying millions of dollars to New York City delivery workers \u2014 and admitting that it messed…\n","protected":false},"author":2,"featured_media":353549,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[22071,86376,131816,13357,341,6367,26652,131818,9,56,63,65,64,131817,18171,21039,34339,42133,8904,3442],"class_list":["post-353548","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-app","tag-dashers","tag-delivery-company","tag-department","tag-doordash","tag-million","tag-mistake","tag-most-worker","tag-new-york","tag-ny","tag-nyc","tag-nyc-headlines","tag-nyc-news","tag-on-call-time","tag-option","tag-payment","tag-settlement","tag-tip","tag-tuesday","tag-year"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/353548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=353548"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/353548\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/353549"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=353548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=353548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=353548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}