DoorDash to pay $131.5m after underpaying New York workers
News Source
β’Tue, 22 Sep 2026 19:18:57 GMT
π° What Happened
DoorDash will pay $131.5m to settle a New York City investigation that found it underpaid delivery workers or paid them late. About 264,000 workers get nearly $115m of relief, with a typical payout of around $48. The company also accepted a $16.7m fine. DoorDash said in a statement: 'Simply put, we screwed up.'
π The Backstory
The case follows a 2023 New York City law meant to raise pay for delivery workers. Last year the city accused DoorDash and Uber Eats of using 'design tricks' that cost workers more than $550m in tips. DoorDash said most errors came from deliveries that crossed city lines, had several stops or were cancelled, plus some technical bugs. It must now send the city monthly pay data for three years.
π― Why It Matters
Gig workers often cannot check whether an app paid them correctly. The case and the new pay reports could push other cities to police delivery apps too.
DoorDash will pay $131.5m to settle a New York City investigation that found it underpaid delivery workers or paid them late. About 264,000 workers get nearly $115m of relief, with a typical payout of around $48. The company also accepted a $16.7m fine. DoorDash said in a statement: 'Simply put, we screwed up.'
The case follows a 2023 New York City law meant to raise pay for delivery workers. Last year the city accused DoorDash and Uber Eats of using 'design tricks' that cost workers more than $550m in tips. DoorDash said most errors came from deliveries that crossed city lines, had several stops or were cancelled, plus some technical bugs. It must now send the city monthly pay data for three years.
Gig workers often cannot check whether an app paid them correctly. The case and the new pay reports could push other cities to police delivery apps too.