NowWire · AI-assisted reporting summary · September 23, 2026 UTC
New York City and DoorDash reached a historic $131.5 million settlement following an investigation by the city's Department of Consumer and Worker Protection that found the delivery giant underpaid workers. According to city officials, the agreement marks the largest settlement for food delivery workers in American municipal history. [1] [2]
Out of the total settlement amount, nearly $115 million will go directly as relief to approximately 264,000 delivery workers, with some eligible to receive up to $5,000 and a median payout of about $48. The remaining funds cover a $16.7 million fine and the creation of software enabling workers to record and share payment data with the city. DoorDash is also required to submit payment data regularly to New York City for three years. [1] [2]
New York City Mayor Zohran Mamdani criticized the company during a Tuesday news conference, arguing that the pay discrepancies stemmed from intentional business practices rather than simple rounding errors, pointing to issues with how hours, canceled trips, and cross-boundary deliveries were calculated. DoorDash admitted to the underpayments and delayed wages, stating that it "screwed up," but maintained that the mistakes were unintentional technical bugs and operational errors rather than deliberate misconduct. [1] [2]
Sources
- Mamdani blasts DoorDash CEO's 'greedy algorithm,' NY slaps company with $131 million settlement — 2026-09-22T13:58:33-04:00
- DoorDash reaches $131.5M settlement with New York City over delivery workers’ pay — 2026-09-22T12:57:07.690Z