DoorDash agrees to $131.5 million NYC worker pay settlement

DoorDash will pay $131.5 million to settle a New York City investigation into alleged violations of delivery-worker pay laws, in what city officials described as the largest worker settlement in the city’s history. Roughly 260,000 to 264,000 delivery workers are expected to receive compensation for wages that were underpaid, unpaid or paid late, including payments linked to disputed pay calculations and invalid bank information. The settlement includes more than $83 million to resolve disagreements over how time spent online between deliveries should be counted, $12.3 million in direct payments to workers and $16.7 million in fines and other costs paid to the city. DoorDash attributed payment problems to technical errors, complex or canceled deliveries and incomplete banking information, acknowledged that it had fallen short and agreed to use the city’s calculation method going forward. The company will also face enhanced monitoring to ensure compliance, while city officials emphasized that workers must be paid fully and on time.