NEW YORK (Diya TV) — DoorDash will pay $131.5 million to resolve a New York City investigation that found the company underpaid or delayed payments to delivery workers, city officials announced Tuesday.
The agreement will provide more than $115 million to about 264,000 workers. DoorDash will pay another $16.7 million in civil penalties and costs. Mayor Zohran Mamdani called it the largest worker settlement in city history.
The Department of Consumer and Worker Protection opened the investigation after dozens of workers reported missing or late payments. Workers Justice Project helped workers submit complaints, prompting the agency to review DoorDash’s payment records.
Investigators analyzed more than 152 million payment transactions and 110 million working hours. The agency said DoorDash failed to pay thousands of workers for completed work and paid thousands of others later than city law allows.
The investigation also found that DoorDash excluded certain trip and on-call time when calculating compensation under the city’s minimum pay rule. New York City began enforcing the rule in December 2023. The current rate is $22.13 per hour before tips.
DoorDash said technical problems and complex deliveries caused many of the payment errors. Those deliveries included orders that crossed city limits, involved multiple pickup or drop-off locations or were canceled or only partly completed. The company said it has corrected the technical problems.
“Simply put, we screwed up,” DoorDash said in a statement. “Our mistakes meant some Dashers were underpaid or paid late.”
Workers who received no payment will receive the amount owed plus compensation equal to twice that amount. Workers who received late payments will receive the original amount plus an equal amount in compensation.
Eligible workers do not need to file claims. In late October, a settlement administrator will email workers affected between April 22, 2022, and June 28, 2026. Workers may choose electronic payments or checks. Those who do not select a payment method will receive checks at their last known addresses.
The city expects to issue a second round of payments to a smaller group of workers in early 2027. Those payments will address additional compensation errors that may have affected some DashLink workers.
The agreement also places DoorDash under a three-year monitoring program. The company must submit monthly payment data to the city, update its software, strengthen internal controls and appoint a compliance monitor.
Workers Justice Project and Princeton University’s Workers’ Algorithm Observatory will also develop software that lets workers share trip and earnings information directly with city regulators.
