AI Image
DoorDash reaches $131M deal with NYC for underpaying delivery workers: 'We screwed up'
nypost.com • • general
Key Points:
- DoorDash has agreed to a $131 million settlement with New York City to resolve claims of underpaying or delaying payments to delivery workers, ending a legal dispute with the city's Department of Consumer and Worker Protection.
- The settlement includes $83 million addressing pay calculation issues for couriers logged into the app but not actively delivering, and $12.3 million for workers who were underpaid or paid late.
- DoorDash acknowledged mistakes, attributing errors to factors such as cross-city deliveries, multiple pickup/drop-off locations, partial or canceled orders, technical bugs, and incomplete courier banking information.
- The company stated that less than 1% of payments were affected, with the median payout to couriers estimated at around $48.
- This settlement follows a separate city report accusing DoorDash and Uber Eats of reducing delivery workers’ tips by changing the tipping system, causing average tips to drop significantly.
