DoorDash said it would pay $131.5m \u2060to settle a \u200bNew York City government investigation that found the food delivery company underpaid or waited too long to pay workers.<\/p>\n
Mayor Zohran Mamdani called the settlement the city\u2019s largest \u2060labor enforcement action. It advances the city\u2019s longstanding effort to hold food delivery companies to a 2023 law intended to improve pay for delivery workers.<\/p>\n
The accord also came nearly \u2060eight months after the city\u2019s department of consumer and worker protection accused DoorDash and rival Uber Eats of engineering \u201cdesign tricks\u201d \u200bto deprive workers of more than $550m in tips.<\/p>\n
DoorDash \u200cwill provide nearly $115m of \u200crelief to about 264,000 workers, whom it calls Dashers, with a median payout of about $48. It accepted a $16.7m \u200ccivil fine.<\/p>\n
\u201cSimply put, we screwed up,\u201d San Francisco-based DoorDash said in a statement. \u201cOur mistakes meant some Dashers were underpaid or paid late. While these mistakes weren\u2019t intentional, that doesn\u2019t make them OK.\u201d<\/p>\n
Shares of DoorDash rose 0.2% in afternoon trading.<\/p>\n
The payout includes $83m to resolve a dispute over how to calculate pay for workers who were logged into the company\u2019s app but not actually making deliveries. Another $12.3m addresses payments that were \u200cmissed or arrived days or weeks late.<\/p>\n
DoorDash also agreed to send detailed pay data to the city every month for three years.<\/p>\n
At a press conference, Mamdani called the \u200bsettlement \u201cpart of a larger commitment to hold delivery companies accountable\u201d.<\/p>\n
He said DoorDash, through its use of \u201cgreedy algorithms\u201d, failed to comply with the 2023 city law intended to improve pay for delivery workers.<\/p>\n
\u201cFor years, DoorDash failed to count every hour worked by delivery workers,\u201d Mamdani said. \u201cThis was not a rounding error or an accidental mistake.\u201c<\/p>\n
City officials declined to address whether \u2060Uber Eats and the delivery app Grubhub are complying with the 2023 law.<\/p>\n
Uber declined \u200bto comment. Grubhub did not immediately respond \u200bto requests for comment.<\/p>\n
DoorDash said many \u200berrors resulted from deliveries that crossed city boundaries, had multiple pickup or drop-off locations, or were \u200bonly partially fulfilled or \u200ccanceled.<\/p>\n
It said other \u200berrors resulted from technical \u200bbugs, or having incomplete banking information for workers. The company said it has fixed technical issues that caused the mistakes.<\/p>\n
DoorDash, Uber Eats and Grubhub have had multiple legal battles with New York City, including challenges to its tipping laws and whether they must share customers\u2019 data with restaurants.<\/p>\n","protected":false},"excerpt":{"rendered":"DoorDash said it would pay $131.5m \u2060to settle a \u200bNew York City government investigation that found the food…\n","protected":false},"author":2,"featured_media":353816,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[9,11,10],"class_list":["post-353815","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york","tag-new-york","tag-new-york-headlines","tag-new-york-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/353815","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=353815"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/353815\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/353816"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=353815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=353815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=353815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}