DoorDash Agrees to $131.5M Settlement for NYC Delivery Workers

DoorDash has agreed to pay $131.5 million to settle a New York City investigation into minimum wage violations for app-based delivery workers. The settlement covers approximately 260,000 workers, known as Dashers, who worked in the city between 2022 and 2026.

More than $115 million of the total will go directly to workers as restitution, while roughly $16 million covers penalties paid to the Department of Consumer and Worker Protection. The city began its probe in summer 2023 after workers reported account deactivations and withheld final payments.

“We screwed up, and our mistakes meant some NYC Dashers were underpaid or paid late.”

The agreement resolves two main issues: about $12.3 million addresses missing or significantly delayed payments caused by technical errors, cross-border deliveries, and incomplete banking data. Another $83 million settles a dispute over "on-call time" pay for periods when workers were logged in but not actively delivering.

DoorDash explicitly admitted fault, stating, "We screwed up, and our mistakes meant some NYC Dashers were underpaid or paid late." The company agreed to use the city's formula for calculating on-call pay going forward and said technical issues have been fixed.