WASHINGTON (dpa-AFX) - DoorDash, Inc. (DASH) announced Tuesday a settlement with New York City's Department of Consumer and Worker Protection (DCWP) over compliance with the pay rules for delivery workers.
DoorDash said, 'We screwed up, and our mistakes meant some NYC Dashers were underpaid or paid late. We're making things right by paying every Dasher what they're owed and fixing what caused this.'
The $131.5 million settlement with the City includes $12.3 million for Dashers who were underpaid or paid late and over $83 million to resolve a disagreement over how to calculate pay for time Dashers spend online between deliveries.
The DCWP is receiving $16.7 million in fines owed to them as part of the settlement.
New York City has the most complex earning standard for delivery workers in the country. Since it took effect in 2023, New York City Dashers have earned more than $1 billion and the average Dasher pay per active hour before tips is roughly $30.
DoorDash acknowledged that it made mistakes despite its best efforts to comply with the new rules. It added that many errors were caused by technical bugs or happened in complicated situations.
These complicated situations included deliveries that crossed city boundaries, had multiple pickup or drop-off locations, or were only partially fulfilled or cancelled. In other cases, errors stemmed from Dashers providing incomplete or inaccurate banking information.
Approximately 264,000 Dashers will receive a payment, including 209,000 for missing or late payments.
Less than 1% of all payments to NYC Dashers were affected. Around $6.6 million worth of payments never reached Dashers, and another $5.7 million arrived days or in some cases, weeks late.
The average missing payment owed to Dashers is $7.70, and 65% of impacted Dashers were underpaid by $1 or less, and the median payment will be around $48.
The company noted that Dashers will be paid a minimum of $10, even if they were underpaid by less than that.
DoorDash also confirmed that it has fixed the technical issues that caused these errors, including better validation of banking information to ensure we catch issues before it causes a missed payment. The compliance program also has been strengthened to help prevent this from happening again.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
