DoorDash agrees to pay $131.5 million for New York wage violations
New York City announced that DoorDash must pay $131.5 million in a settlement regarding unpaid wages and law violations for delivery workers.
Settlement covers missing payments
The enforcement action addresses late or missing payments for completed deliveries reported by workers. DoorDash will distribute more than $115 million directly to the affected workforce. Over 260,000 workers are set to receive compensation calculated at approximately 200 percent of their underpaid amounts.
Company cites technical errors
DoorDash attributes some missing payments to technical issues and complications involving deliveries that crossed city boundaries. The company also notes disputes over how to calculate pay for time spent online between deliveries. These factors contributed to the violation of the city's minimum wage and delivery work protection laws.
Investigation led by DCWP
New York's Department of Consumer and Worker Protection conducted the investigation based on worker reports. The settlement includes civil penalties in addition to the funds for workers. DoorDash issued a separate announcement on its website confirming these details.
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