DoorDash reaches $131.5M settlement with New York City over delivery workers’ pay

DoorDash agreed to a $131.5 million settlement with New York City over allegations that it underpaid workers or delayed their payments.

The settlement includes a $16.7 million fine and nearly $115 million in payments to about 264,000 delivery workers.

DoorDash said the payments will address disputes over how it calculated pay for workers who were logged into the app but not making deliveries, as well as missed or delayed payments.

The company attributed many of the errors to technical problems, incomplete banking information and complicated deliveries involving multiple locations, while saying it has fixed the issues, NBC News has reported.

The settlement follows broader disputes between New York City and food delivery companies over worker pay, tipping practices and other regulations.