Home / Business and Economy / DoorDash to Pay $131.5M Over Worker Pay Disputes
DoorDash to Pay $131.5M Over Worker Pay Disputes
23 Sep
Summary
- DoorDash will pay $131.5 million to settle a NYC investigation.
- The settlement benefits approximately 264,000 workers.
- Mayor Mamdani condemned DoorDash's use of 'greedy algorithms'.
DoorDash has agreed to pay $131.5 million to settle a New York City government investigation. The investigation found that the food delivery company had underpaid or delayed payments to its workers. This settlement represents the city's largest labor enforcement action to date.
The agreement will provide nearly $115 million in relief to about 264,000 workers, known as Dashers, with each receiving a median payout of around $48. DoorDash also accepted a $16.7 million civil fine as part of the accord.
Mayor Zohran Mamdani condemned DoorDash's practices, citing the company's "greedy algorithms" for failing to comply with a 2023 law intended to enhance pay for delivery personnel. He stated that the company did not properly count every hour worked by its delivery staff.
DoorDash acknowledged past mistakes, stating, "Our mistakes meant some Dashers were underpaid or paid late." The company attributed errors to various factors, including deliveries crossing city boundaries, technical bugs, and incomplete worker banking information, noting that technical issues have been resolved.
