Doordash Settles for $131M Over Underpayment to NYC Delivery Workers

WHO:

Fox News - New York City Mayor Zohran Mamdani criticized DoorDash CEO Tony Xu for promoting a "greedy algorithm" during a news conference.

Techmeme - DoorDash, New York City's Department of Consumer and Worker Protection (DCWP)

WHAT:

Fox News - The settlement resolves claims related to 152 million payments made to delivery workers.

Fast Company - The city’s Department of Consumer and Worker Protection found that DoorDash violated the minimum pay rate by excluding several categories of trip time and on-call time when calculating compensable time.

Fast Company - The city began enforcing a minimum pay rate for delivery workers, which now stands at $22.13 per hour, equivalent to a full-time annual salary of about $46,000.

Fast Company - The median payment that will be returned to affected workers is about $48, with some workers potentially receiving checks in excess of $10,000.

Fast Company - Notifications about the amounts owed to workers will begin, and checks will be sent out starting in late October, with another round of checks in early 2027 after DoorDash corrects its compensable-time calculation logic.

Fast Company - The median payment that will be returned to affected workers is about $48, with some workers potentially receiving checks in excess of $10,000.

Fast Company - The city’s Department of Consumer and Worker Protection began a citywide investigation years before Mamdani took office after receiving complaints from dozens of DoorDash workers.

Fast Company - The average payment owed to workers is about $442, with some workers potentially receiving checks in excess of $10,000.

Fast Company - Workers who were not paid at all or were paid late will receive compensation calculated at approximately 200% of the amount they were underpaid.

Fox News - More than 260,000 delivery workers who were underpaid between April 2022 and June 2026 will receive direct payments starting in late October.

Fox News - $115 million of the settlement will go directly back to delivery workers, with some in line to receive up to $5,000.

Fox News - DoorDash will be required to regularly submit delivery worker payment data to the city for three years.

Techmeme - DoorDash will pay $131.5 million to settle an investigation regarding its compliance with the city's delivery driver pay law.

NY Post - DoorDash reached a settlement to pay food delivery drivers in New York City millions in backpay.

WHERE:

Techmeme - New York City

WHEN:

Techmeme - The investigation was related to compliance with the city's 2023 delivery driver pay law.

WHY:

Fox News - Mayor Zohran Mamdani stated, "For years, DoorDash failed to count every hour worked by delivery workers. This was not a rounding error or an accidental mistake."

Fast Company - Mayor Zohran Mamdani stated, "This was not a rounding error or an accidental mistake. Today, after years of corporate greed and impunity, we are holding DoorDash to account."

Fox News - New York City Mayor Zohran Mamdani stated that the $131.5 million marked the "largest settlement for food delivery workers ever secured in American municipal history."

NY Post - DoorDash acknowledged that they "screwed up" regarding the underpayment of tips to delivery workers.

HOW:

Fast Company - The settlement includes the development of software that will allow delivery workers to record the DoorDash app and share data about their payment with the city.

Fox News - The settlement includes the development of software that will allow delivery workers to record the DoorDash app and share data about their payment with the city.

Fast Company - The city agency found that DoorDash violated the minimum pay rate by excluding several categories of trip time and on-call time when calculating compensable time.

Fox News - The settlement includes the development of software that will allow delivery workers to record the DoorDash app and share data about their payment with the city.

ABC News Business - The settlement resolves claims that DoorDash underpaid delivery workers in New York City.

Techmeme - The settlement resolves a year-plus investigation into DoorDash's practices.

(UPDATED September 22, 2026 22:58 UTC)

A significant settlement has been reached regarding claims related to $152 million in payments made to delivery workers, as DoorDash was found to have violated the minimum pay rate by excluding certain categories of trip and on-call time. The city has established a minimum pay rate of $22.13 per hour, which translates to an annual salary of about $46,000, and affected workers will receive median payments of around $48, with some potentially exceeding $10,000. Notifications about the amounts owed will begin soon, with checks being sent out starting in late October, and the settlement also includes the development of software to help workers track their payments.

(UPDATED September 22, 2026 20:57 UTC)

New York City Mayor Zohran Mamdani has publicly criticized DoorDash CEO Tony Xu for promoting what he called a "greedy algorithm" during a recent news conference. As part of a settlement from a citywide investigation into DoorDash, affected workers will receive a median payment of about $48, with some potentially getting checks exceeding $10,000. Additionally, the settlement will lead to the development of software that enables delivery workers to record the DoorDash app and share their payment data with the city.

(UPDATED September 22, 2026 19:59 UTC)

DoorDash is set to compensate workers after a city agency found the company violated minimum pay rates by excluding certain trip and on-call times from its compensable time calculations. The average payment owed to workers is around $442, with some potentially receiving checks exceeding $10,000, and those who were underpaid or not paid at all will receive approximately 200% of the amount they were owed. Notifications about the amounts owed will begin soon, with checks being sent out starting in late October and another round planned for early 2027.

(UPDATED September 22, 2026 19:01 UTC)

In a landmark decision, more than 260,000 delivery workers who were underpaid between April 2022 and June 2026 will begin receiving direct payments starting in late October, with a total of $115 million allocated for this purpose. Some workers could see payments of up to $5,000 as part of what New York City Mayor Zohran Mamdani called the "largest settlement for food delivery workers ever secured in American municipal history." Additionally, DoorDash will be required to submit delivery worker payment data to the city regularly for three years, and the settlement includes the development of software to help workers record their earnings through the DoorDash app.

(UPDATED September 22, 2026 16:59 UTC)

DoorDash has reached a settlement that addresses claims of underpayment for delivery workers in New York City. This resolution comes after allegations that the company did not fairly compensate its workers for their services. The details of the settlement are expected to provide better pay and working conditions for those affected.

(UPDATED September 22, 2026 13:04 UTC)

DoorDash will pay $131.5 million to settle an investigation into its compliance with New York City's delivery driver pay law, which was enacted in 2023. The settlement comes after DoorDash acknowledged that they "screwed up" by underpaying tips to their delivery workers. This resolution wraps up a year-long investigation into the company's practices regarding driver compensation.