NYC Mayor Mamdani announces $131.5 million DoorDash settlement over underpaid delivery workers: Deal explained

Mayor Zohran Mamdani's administration in New York City has reached a $131.5 million settlement with food delivery company DoorDash to address underpayments to delivery workers. The agreement covers over $83 million to resolve a dispute over the calculation of pay for idle time between deliveries and $12.3 million for couriers who were underpaid or had issues with late payments due to invalid bank information.

Another $16.7 million will go to fines to the city's Department of Consumer and Worker Protection. Around 264,000 delivery workers will receive compensation, with an average of $7.70 owed and the median payment at $48. The settlement aims to ensure delivery workers are paid their wages on time and in full.