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DoorDash to Pay $131M for Underpaying Delivery Workers in New York City
On Tuesday, DoorDash reached a $131.5 million settlement with New York City's Department of Consumer and Worker Protection over pay rule violations affecting roughly 264,000 Dashers. Mayor Zohran Mamdani called it "a historic settlement for workers."
Violations involved missed or late payments to Dashers, alongside a separate dispute over how DoorDash calculated pay for workers logged into the app but not actively delivering orders.
The settlement allocates $12.3 million for underpaid or late-paid Dashers, $16.7 million as a fine to the city, and more than $83 million to resolve the on-call pay dispute.
DoorDash attributed errors to technical bugs and complex delivery situations like orders crossing city boundaries, stating it has corrected software issues and bolstered internal compliance processes.
NYC enforces a $22.13 minimum hourly pay floor as of April 2026, with the Mamdani government treating enforcement as a priority and planning to extend this requirement to all delivery apps by early 2027.