DoorDash to Pay $131.5M to NYC Over Worker Underpayment Allegations

DoorDash has agreed to pay $131.5 million to the New York City government to settle allegations that the company underpaid its workers. The settlement was announced on Tuesday by Mayor Zohran Mamdani (D) and officials from the Department of Consumer and Worker Protection (DCWP). Under the terms, DoorDash will contribute $115 million to a fund for affected workers and an additional $16.5 million to the city to support enforcement and compliance efforts.

The agreement resolves claims that DoorDash drivers and couriers were not paid the required minimum wage, overtime, or other statutory benefits. The settlement requires the company to implement new wage‑tracking and payment practices, and to provide ongoing oversight to ensure future compliance. The DCWP will monitor DoorDash’s adherence to wage laws and will have the authority to impose penalties if violations recur.

With the settlement finalized, DoorDash will begin disbursing payments to eligible workers and will work with city officials to strengthen wage enforcement. The move is intended to address the city’s concerns about gig‑economy labor practices and to prevent similar disputes in the future.