DoorDash to Pay Over $115 Million to New York Drivers in Settlement

Food delivery company DoorDash has agreed to pay over $115 million to more than 260,000 drivers in New York. The payment is part of a larger $131.5 million settlement with the city that addresses underpayments to drivers.

The settlement has been hailed by New York City officials as a historic win, marking the largest of its kind in the city and the largest involving food delivery workers in the U.S. The city's Department of Consumer and Worker Protection initiated an investigation years prior after receiving complaints from numerous DoorDash drivers.

Under the terms of the settlement, drivers are expected to receive an average payment of approximately $442. However, individual amounts will likely vary significantly based on the extent of underpayment or late payments. Drivers who were not paid at all or received late payments will be compensated at roughly double the amount they were underpaid.

DoorDash has acknowledged making errors in its pay calculation methods, stating that while the mistakes were not intentional, they are nonetheless unacceptable. The company has previously faced scrutiny for violating New York's minimum pay rate, which is currently set at $22.13 per hour. The settlement covers the period from April 2022 to June 2026.