Light Mode
Dark Mode
System Mode
DoorDash to pay $131.5M to settle claims of underpaying New York delivery workers, resolving wage disputes and penalties.
DoorDash agreed to a $131.5m settlement with New York City regulators after acknowledging that thousands of delivery workers were underpaid or paid late, the company said. The payment resolves a city probe by the Department of Consumer and Worker Protection into how DoorDash calculated compensation for drivers’ waiting time and other wage practices.
The company attributed errors to changes in New York State’s minimum pay rules introduced in 2023, technical glitches and multi-stop routes that affected pay calculations. DoorDash said the mistakes were not intentional and that it has fixed the software bugs responsible for the issues.
DoorDash reported that roughly 264,000 workers were hit by the problems, though the firm said the errors affected under 1% of local transactions. It stated that systemic issues left about $6.6m unpaid to workers and delayed another $5.7m, while local workers earn about $30 per active hour on average, according to the company.
The settlement addresses wage calculation and payment timing issues identified by the city investigation. DoorDash’s explanations cited state minimum pay changes, technical faults and delivery routing as causes. The company quantified affected workers and the unpaid and delayed sums and reported software fixes have been implemented.