Home / Business and Economy / DoorDash Admits 'Screwing Up' Worker Pay System
DoorDash Admits 'Screwing Up' Worker Pay System
22 Sep
Summary
- DoorDash settled a New York City probe for $131.5 million.
- The settlement includes a $16.7 million fine for underpaying workers.
- The company admitted to mistakes in worker payments.
DoorDash has reached a $131.5 million settlement with New York City's Department of Consumer and Worker Protection. This resolution addresses a government probe that found the food delivery company failed to pay its workers adequately and in a timely manner. The settlement includes a $16.7 million fine, reflecting the severity of the infractions.
Key to the agreement is the resolution of a dispute concerning the calculation of pay for workers who were logged into the app and available but not actively making deliveries. DoorDash will also provide over $12 million in additional remedies for missed or delayed payments.
The company, based in San Francisco, publicly acknowledged its shortcomings, stating, "Our mistakes meant some Dashers were underpaid or paid late." While attributing some errors to technical bugs and incomplete worker banking information, DoorDash confirmed that technical issues causing these mistakes have been fixed.
This settlement is part of a broader pattern of legal challenges DoorDash and other delivery app rivals face in New York City. Previous disputes have involved tipping laws and the sharing of customer data with restaurants.
