DoorDash to pay $131.5m settlement after underpaying and delaying wages for New York City workers
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DoorDash agreed to a $131.5m settlement with New York City regulators after underpaying or delaying pay for gig workers, largely tied to mandated compensation for on-app waiting time. The payout and admission heighten regulatory and compliance risk for app-based labor platforms, potentially tightening unit economics via higher labor costs, reporting requirements, and operational controls. The development may spill over to other gig-economy firms facing similar municipal scrutiny.
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DoorDash has agreed to a $131.5m settlement with New York City regulators over failures to pay gig workers fully or on time. Of that total, $83m addresses a dispute over how the company calculated pay for time workers were logged on the app waiting for orders, while systemic errors left about $6.6m in wages unpaid and another $5.7m paid days or weeks late. DoorDash said the problems stemmed from “complex” changes to New York state minimum-wage rules introduced in 2023 and said the issues affected under 1% of overall local transactions.
