New York City has secured its largest worker settlement ever to repay delivery workers who were underpaid or paid late.
The settlement with New York City’s Department of Consumer and Worker Protection (DCWP) requires DoorDash to pay $131.5 million total, including more than $115 million directly to affected workers and over $16 million in fines and costs.
It covers violations of the city’s minimum pay rules that took effect in 2023 and resolves a dispute over how to calculate pay for time logged into the app between deliveries.
More than 260,000 Dashers will receive payments, with $12.3 million addressing missing or late pay and more than $83 million tied to the on-call time calculation.
The average missing payment is $7.70, and workers will receive at least $10 even if owed less.
“Workers do not need to file a claim or submit evidence to receive payment. DCWP has identified all individuals owed money through its analysis of DoorDash’s records.”
DoorDash said technical bugs and complex deliveries caused the shortfalls, and that it is fixing the issues. The company put the missteps bluntly.
“We screwed up.”
Mayor Zohran Kwame Mamdani weighed in on the deal.
“When a worker earns a wage, they deserve to be paid that wage — not tomorrow, not after a lawsuit, but on time and in full.”
The agreement also creates a three-year, worker-driven compliance monitoring program with monthly data reports. It also requires DoorDash to establish software updates and internal controls while adhering to the standards of an internal compliance monitor.
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