DoorDash settled a $131.5 million NYC probe over underpaying delivery workers
The $131.5 million agreement with New York City includes $12.3 million for workers who were underpaid or paid late and a $16.7 million fine
DoorDash has agreed to a $131.5 million settlement with New York City regulators, admitting to underpaying thousands of food delivery workers. The company acknowledged its mistakes, stating, "Simply put, we screwed up." The agreement follows a city investigation into wage violations, with a significant portion of the payout addressing how DoorDash calculated compensation for drivers waiting for orders.
The settlement comes as part of an ongoing battle between gig economy platforms and municipal leaders, with other companies like Uber Eats and Grubhub also facing similar issues. DoorDash blamed complex changes to the minimum wage in New York state introduced in 2023, as well as technical glitches and multi-stop delivery routes, for the underpayment and delays.
The company noted that local workers earn around $30 per active hour on average and has since fixed the software bugs responsible for the errors. Roughly 264,000 workers were affected, with around $6.6 million in wages never reaching workers and another $5.7 million arriving late.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
