US Markets
Home›US Markets›M&A & Deals›DoorDash to pay $131.5m settlement over New York wage…
DoorDash to pay $131.5m settlement over New York wage violations
Most of the $131.5m payout covers disputes over how DoorDash calculates pay for time workers spend logged into the app between deliveries.
DoorDash has agreed to pay New York City regulators a $131.5 million settlement after admitting it failed to compensate thousands of delivery workers correctly or on time, BBC Business reports. The agreement with the Department of Consumer and Worker Protection follows a city investigation into wage violations, including how DoorDash calculates compensation for delivery drivers’ waiting time when orders are not immediately available. DoorDash said in a statement, “Simply put, we screwed up,” adding that its mistakes meant some drivers were underpaid or paid late.
BBC Business reports that the bulk of the settlement, $83 million, resolves a disagreement over how to calculate pay for time workers spend online between deliveries. The company said New York rules require compensation for all time logged into the app, whereas apps traditionally paid only during active deliveries.
DoorDash attributed the underpayments to complex changes to New York’s minimum pay standards introduced in 2023, along with technical glitches and complications from multi stop delivery routes. The company said the errors affected roughly 264,000 workers, while also saying the issues impacted under 1% of local transactions, and that the settlement includes about $6.6 million in wages that never reached workers and $5.7 million in wages delivered days or weeks late.