DoorDash to Pay $131.5 Million in NYC Delivery Worker Settlement

DoorDash has agreed to pay $131.5 million to resolve a New York City investigation into payments made to delivery workers.

The settlement, announced on September 22, will provide more than $115 million directly to affected delivery workers, while approximately $16 million will cover civil penalties and other costs.

New York City officials said the investigation identified payment issues affecting more than 260,000 delivery workers. Investigators reviewed more than 152 million payment transactions and 110 million hours of work as part of the case.

The settlement addresses allegations involving underpayments, missed payments and delayed payments. According to the city, a portion of the settlement relates to how DoorDash calculated compensation for workers who were logged into the platform while waiting for delivery assignments.

DoorDash acknowledged that some workers were underpaid or paid late, but said the issues resulted from technical and delivery-related mistakes rather than intentional wrongdoing.

As part of the agreement, DoorDash will also provide detailed payment information to New York City for three years, allowing officials to monitor compliance with the city’s delivery-worker pay requirements.

City officials described the agreement as the largest worker settlement in New York City history.

The settlement comes as governments continue examining how gig-economy platforms calculate compensation and protect workers who depend on app-based delivery services.

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