{"id":353638,"date":"2026-09-22T15:54:08","date_gmt":"2026-09-22T15:54:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/353638\/"},"modified":"2026-09-22T15:54:08","modified_gmt":"2026-09-22T15:54:08","slug":"doordash-to-pay-at-least-131-5m-after-nyc-finds-it-underpaid-260000-workers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/353638\/","title":{"rendered":"DoorDash to pay at least $131.5M after NYC finds it underpaid 260,000 workers"},"content":{"rendered":"

DoorDash<\/a> will pay at least $131.5 million to settle a New York City investigation that found the delivery giant failed to properly pay more than 260,000 workers, a record enforcement action that will also force changes to how the company tracks and pays delivery workers in the five boroughs.<\/p>\n

Mayor Zohran Mamdani<\/a> and the Department of Consumer and Worker Protection<\/a> (DCWP) announced the settlement Tuesday, calling it the largest labor enforcement action in city history and the largest U.S. municipal settlement involving food delivery workers.<\/p>\n

More than $115.4 million will go into a fund for workers. DoorDash will also pay about $11.3 million in civil penalties, $4.3 million toward a worker-driven compliance program and roughly $468,000 to administer the settlement.<\/p>\n

The total could grow as the agreement requires DoorDash to calculate additional underpayments for work between June 29 and Nov. 29, with any additional worker payments accompanied by another civil penalty equal to 13.79% of that amount.<\/p>\n

DCWP said its investigation began after dozens of workers complained that DoorDash either failed to pay them or paid them late. The agency later expanded the probe using company records and found additional violations of the city\u2019s minimum pay rules.<\/p>\n

DoorDash settlement to deliver up to $3,000 for bilked workers<\/p>\n

The agency found DoorDash failed to pay some workers at all and paid others later than required. It also found the company violated the minimum pay rule by excluding several categories of trip and on-call time from its calculations, including some canceled trips, DashLink work and certain periods when workers were available for NYC deliveries.<\/p>\n

Workers who went unpaid or were paid late will receive more than the amount originally owed. City Hall said a worker owed $1,000 who received nothing would get $3,000 through the settlement, while someone whose $1,000 payment arrived late would receive $2,000.<\/p>\n

DoorDash acknowledged that errors caused some workers to be underpaid or paid late, saying Tuesday that \u201cwe screwed up\u201d and apologizing to affected Dashers. But the company disputes the city\u2019s findings involving the much larger question of how on-call time should have been calculated.<\/p>\n

The company said about 264,000 workers will receive payments, including roughly 209,000 who experienced missing or late payments. It said $6.6 million in payments never reached workers and another $5.7 million arrived days or, in some cases, weeks late.<\/p>\n

DoorDash said more than $83 million of the settlement stems from a disagreement with the city over compensation for on-call time \u2014 periods when workers are logged into the app between deliveries. The company maintains its calculation method was \u201cfair, practical, and legal,\u201d but agreed to use the city\u2019s method going forward rather than spend years litigating the issue.<\/p>\n

DCWP, however, formally found that DoorDash failed to pay the required minimum rate by improperly excluding categories of compensable trip and on-call time. The consent order says those findings were made \u201cwithout any judicial determination,\u201d and DoorDash agreed to resolve the matter without a hearing.<\/p>\n

\u201cWhen a worker earns a wage, they deserve to be paid that wage \u2014 not tomorrow, not after a lawsuit, but on time and in full,\u201d Mayor Mamdani said. \u201cDoorDash underpaid more than 260,000 workers, and today we are getting that money back.\u201d<\/p>\n

Tech bugs to blame, DoorDash says<\/p>\n

DoorDash attributed its acknowledged payment errors to technical bugs, complicated deliveries and, in some cases, incomplete or inaccurate banking information provided by workers. The company said it has fixed the technical problems and strengthened its compliance program.<\/p>\n

Tuesday\u2019s agreement also requires DoorDash to change parts of its app and payment systems in the five boroughs.\n<\/p>\n

Within 30 days, it must ensure an NYC delivery cannot be offered unless the worker\u2019s time is being recorded as compensable trip or on-call time, change how certain bundled deliveries are treated and establish safeguards aimed at preventing failed payments.<\/p>\n

DoorDash must also provide workers with more detailed information about their earnings and minimum-pay calculations and submit monthly compliance data to DCWP for three years.<\/p>\n

The settlement\u2019s $4.3 million compliance fund will support Workers Justice Project and Princeton University\u2019s Workers\u2019 Algorithm Observatory in developing tools that allow workers to collect and share their DoorDash trip and pay data with the city, giving regulators another way to monitor the company\u2019s compliance.<\/p>\n

Affected workers will not have to file claims, according to officials. DCWP said it has already identified those eligible through DoorDash\u2019s records, with personalized notices expected to begin going out in late October.<\/p>\n","protected":false},"excerpt":{"rendered":"DoorDash will pay at least $131.5 million to settle a New York City investigation that found the delivery…\n","protected":false},"author":2,"featured_media":353639,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[46574,341,131944,131945,50131,131946,591,12545,9,131947,56,63,131948,65,64,47900,131949,131950,131951,82],"class_list":["post-353638","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-department-of-consumer-and-worker-protection","tag-doordash","tag-doordash-settlement","tag-food-delivery-workers","tag-gig-workers","tag-labor-enforcement","tag-labor-rights","tag-minimum-wage","tag-new-york","tag-new-york-city-labor-laws","tag-ny","tag-nyc","tag-nyc-delivery-workers","tag-nyc-headlines","tag-nyc-news","tag-wage-theft","tag-worker-pay","tag-workers-justice-project","tag-workers-algorithm-observatory","tag-zohran-mamdani"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/353638","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=353638"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/353638\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/353639"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=353638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=353638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=353638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}