DoorDash to pay $131M for underpaying delivery workers in New York City
Advertisement
Read this article for free:
or
Already have an account? Log in here »
To continue reading, please subscribe:
Digital Subscription
One year of digital access for only $205*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*First annual payment billed as $205.00 + GST for one year. This annual subscription will automatically renew at $233.00 + GST every 52 weeks (10% off the regular annual price of $259.35). Offer available to new and qualified returning subscribers only. Cancel any time.
To continue reading, please subscribe:
Add Free Press access to your Brandon Sun subscription for only an additional
$1 for the first 4 weeks*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*Your next Brandon Sun subscription payment will increase by $1.00 and you will be charged $17.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.
Read unlimited articles for free today:
or
Already have an account? Log in here »
NEW YORK (AP) — DoorDash will pay $131.5 million to settle claims that it underpaid delivery workers in New York City, Mayor Zohran Mamdani announced Tuesday.
The agreement, which officials descibed as the largest worker settlement in city history, also requires the company to submit to a new monitoring system to ensure compliance with delivery worker pay laws in the city.
In a statement, DoorDash admitted errors, saying: “Simply put, we screwed up.”
“While these mistakes weren’t intentional, that doesn’t make them okay. We pride ourselves on operational excellence at DoorDash – and this was not excellent, nor was it acceptable. Dashers should be paid in full, on time, every time. We are sorry to the Dashers we let down,” the company said.
Most of the settlement will be returned to more than 260,000 workers who were underpaid, not paid or paid late for deliveries by DoorDash, according to City Hall. The company will also pay about $16 million in civil penalties and other costs to the city.
“When a worker earns a wage, they deserve to be paid that wage – not tomorrow, not after a lawsuit, but on time and in full,” Mamdani said in a statement. “DoorDash underpaid more than 260,000 workers, and today we are getting that money back.”
DoorDash said many of the errors in payment were caused by “technical bugs or happened in complicated situations,” such as deliveries that went outside city boundaries, had multiple pickup or drop-off spots or included deliveries that were cancelled or partially completed.
Last year, the company agreed to pay almost $17 million to settle claims that it unfairly used customer tips to subsidize the wages of its delivery workers in New York, rather than allowing drivers to keep the tips on top of their guaranteed pay.
