DoorDash reaches settlement with NYC
Will spend $131.5M over delivery workers pay
By: Jonathan Stempel
Reuters
NEW YORK - DoorDash said September 22 [2026] it will pay $131.5 million to settle a New York city government probe that found the food delivery company underpaid or waited too long to pay workers.
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Mayor Zohran Mamdani called the settlement the city's largest labor enforcement action. It advances the city's effort to hold food delivery companies to a 2023 law intended to improve pay for delivery workers.
..... The accord also came nearly eight months after the city's Department of Consumer and Worker Protection accused DoorDash and rival Uber Easts of engineering "design tricks" to deprive workers of more than $500 million in tips.
..... DoorDash will pride nearly $115 million of relief to about 264,000 workers, whom it calls Dashers, with a median payout of about $48. It accepted a $16.7 million civil fine.
..... "Simply put, we screwed up," San Francisco-based DoorDash said in a statement. "Our mistakes meant some Dashers were underpaid or aid late. while these mistakes weren't intentional, that doesn't make them okay."
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The payout includes $83 million to resolve a dispute over how to calculate pay for workers who were logged into the company's app but not actually making deliveries. Another $12.3 million addresses payments that were missed or arrive days or weeks ale.
..... DoorDash also agreed to send detailed pay data to the city every month for three years.
..... At a news conference Mamdani called the settlement "part of a larger commitment to hold delivery companies accountable."
..... He said DoorDash, through its use of "greedy algorithms," failed to comply with the 2023 city law intended to improve pay for delivery workers.
..... "For years, DoorDash failed to count every hour worked by delivery workers," Mamdani said. "This
was not a rounding error or an accidental mistake."
..... City officials declined to adders whether Uber Eats and the delivery app Grubhub are complying with the 2023 law. Uber declined to comment. Grubhub did not immediately reasoned to request for comment.