DoorDash has agreed to a $131.5 million enforcement settlement with New York City after the Department of Consumer and Worker Protection found systematic violations of the city's delivery-worker laws. City officials say more than $115 million will go directly to workers and more than $16 million will cover civil penalties and costs.
The city says the case will provide relief to more than 260,000 workers who were underpaid, unpaid or paid late. Its investigation began with worker complaints and expanded after the agency examined company pay data. DCWP said it analyzed more than 152 million payment transactions and 110 million working hours.
Payment checks will continue
The settlement is not only about past payments. DoorDash must submit monthly data reports for three years, while DCWP, Workers Justice Project and Princeton's Workers' Algorithm Observatory will build a system for workers to share trip and earnings data with the agency. The city says the system is meant to surface problems sooner rather than waiting for a worker to identify an underpayment.
According to the city, the investigation found that DoorDash excluded some trip and on-call time when calculating the minimum pay rate after the rule took effect in December 2023. DoorDash said some payment errors arose from technical bugs and complicated delivery situations, while the parties also disagreed over some pay calculations. Workers identified by the city will receive payment notices beginning in late October; a second, smaller round is planned for early 2027 while DoorDash corrects part of its calculation logic.
Sources: New York City announcement; DoorDash statement.
