AI Image
NYC Mayor Mamdani reaches record DoorDash settlement for underpaid workers
Al Jazeera • • general
Key Points:
- New York City has reached a $131 million settlement with DoorDash over allegations of underpaying delivery workers, the largest such settlement in any U.S. city, affecting approximately 260,000 workers.
- Of the settlement, $115 million will be paid directly to workers, with an additional $16 million allocated for civil penalties and other costs, and underpaid workers will receive 200% of the amounts owed.
- The city's Department of Consumer and Worker Protection found DoorDash failed to pay minimum wages legally required between December 2023 and June 2026, with some underpayments continuing through November before corrective actions.
- This settlement follows New York's enforcement of a minimum pay rule for app-based delivery workers, initiated under former Mayor Eric Adams and expanded under Mayor Zohran Mamdani, who emphasized timely and full wage payments.
- Similar measures are being implemented in other U.S. cities, such as Seattle, where Uber Eats recently settled for $4.4 million over minimum-pay violations affecting 14,000 workers.
