DoorDash Settles NYC Worker Pay Probe for $131.5 Million

DoorDash has agreed to a $131.5 million settlement with New York City over allegations that it underpaid delivery workers or delayed their payments. The agreement with the Department of Consumer and Worker Protection includes a $16.7 million fine and comes nearly eight months after the city accused DoorDash and Uber Eats of using “design tricks” to deprive workers of more than $550 million in tips.

The San Francisco-based company will provide nearly $115 million in relief to approximately 264,000 delivery workers, known as Dashers. The payments include $83 million to resolve a dispute over compensation for workers logged into the app and on-call, along with $12.3 million for missed or delayed payments. DoorDash said the median payout would be about $48 and acknowledged that errors had resulted in workers being underpaid or paid late.

DoorDash attributed the payment errors to deliveries crossing city boundaries, multiple pickup or drop-off locations, canceled or partially fulfilled orders, technical bugs and incomplete banking information. The company said it has fixed the technical issues responsible for the mistakes. The settlement comes amid ongoing legal disputes between New York City and major food delivery platforms, including DoorDash, Uber Eats and Grubhub, over tipping laws and customer data-sharing requirements.

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