Key facts
- DoorDash will pay $131.5 million to settle a New York City investigation into its pay practices for delivery workers.
- The company acknowledged mistakes led to some workers being underpaid or paid late.
- The settlement includes $83 million for disputes over pay for 'on-call time,' when workers are logged into the app waiting for orders.
- An additional $12.3 million will be paid for missed or late payments.
- DoorDash will provide nearly $115 million in relief to about 264,000 workers.
- DoorDash accepted a $16.7 million civil fine.
DoorDash has agreed to pay $131.5 million to settle a New York City investigation into its pay practices for delivery workers, resolving claims that the company underpaid or delayed payments to its workers. The company acknowledged that its mistakes led to some workers being underpaid or paid late.
The settlement resolves disputes over how DoorDash calculated pay, particularly for "on-call time"—the minutes workers spend waiting for orders while logged into the app. New York City law requires compensation for this time, and DoorDash will now use the city's method going forward. The company stated that it chose to settle rather than engage in a lengthy legal battle over calculation methods.
Of the total settlement, $83 million will address the on-call time pay disagreements, while $12.3 million will cover missed or late payments. DoorDash noted that about $6.6 million in compensation was never paid, and another $5.7 million was paid late. The company added that 65% of affected workers were underpaid by less than $1, and the median payment will be around $48, with a minimum payment of $10 for all underpaid Dashers. DoorDash stated that local workers earn roughly $30 per active hour on average and that the errors hit roughly 264,000 workers, though the issues affected under 1% of overall local transactions. Mayor Zohran Mamdani called the settlement the city’s largest labor enforcement action.