WASHINGTON (dpa-AFX) - DoorDash Inc (DASH) has agreed to pay $131.5 million to settle a New York City investigation into allegations that the food delivery company underpaid workers or delayed their payments.
The settlement includes $16.7 million in penalties and nearly $115 million in payments to about 264,000 delivery workers, known as Dashers.
About $83 million of the worker relief will address a dispute over how DoorDash calculated compensation for workers who remained logged into the app and available for deliveries but were not actively completing orders.
Another $12.3 million will cover payments that were missed or delivered days or weeks late. DoorDash said roughly $6.6 million in wages never reached workers and another $5.7 million was paid late.
The company attributed the errors to complex changes to New York's minimum-pay rules, technical problems, incomplete banking information and complicated deliveries involving multiple locations or city boundaries.
DoorDash said it has fixed the software issues and acknowledged that the mistakes affected workers despite not being intentional.
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