DoorDash has agreed to a $131.5 million settlement with New York City authorities following an investigation into the underpayment and delayed payment of delivery workers.
The settlement with the city’s Department of Consumer and Worker Protection includes a $16.7 million fine and nearly $115 million in relief for about 264,000 delivery workers, known as Dashers.
About $83 million of the worker relief will resolve a dispute over how DoorDash calculated payments for workers who were logged into its platform and available for deliveries but were not actively making deliveries. Another $12.3 million covers payments that were missed or delayed by days or weeks.
DoorDash said its median payment to eligible workers under the settlement would be about $48.
The company acknowledged that some Dashers had been underpaid or paid late, attributing many of the errors to deliveries crossing city boundaries, multiple pickup or drop-off locations, partially completed or cancelled orders, technical problems and incomplete banking information.
DoorDash said the mistakes were not intentional and that it had fixed the technical problems responsible for the payment failures.
The settlement follows broader disputes between New York City and food-delivery platforms over worker compensation and business practices. The city has also been involved in legal battles with DoorDash, Uber Eats and Grubhub concerning tipping rules and customer data.
The agreement represents a significant financial settlement for DoorDash while providing compensation to thousands of delivery workers affected by the payment issues.
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