Writer: Lucy Lazarony
Editor: Adam West
Reviewer: Ashley Fricker
Key Takeaways
DoorDash has reached a $131.5 million settlement with New York City’s Department of Consumer and Worker Protection (DCWP) over pay rules for DoorDash delivery workers.
DoorDash acknowledged on its website that mistakes had left some delivery workers underpaid or paid late. The company apologized to affected workers, saying they should be paid in full and on time, every time.
The $131.5 million settlement includes more than $115 million for delivery workers and more than $16 million in civil penalties and costs, according to DCWP.
What Went Wrong With DoorDash in NYC
Since 2023, DoorDash delivery workers in New York City have earned more than $1 billion and the average worker pay per active hour before tips is about $30, according to DoorDash. Active hours do not include time spent waiting between deliveries.
During this period, technical bugs and complicated delivery situations caused payment errors. These situations included deliveries that crossed city boundaries, deliveries with multiple pickup or drop-off locations, or deliveries that were only partially fulfilled or canceled, according to DoorDash.
Other errors occurred because DoorDash workers provided inaccurate or incomplete banking information, the company said.
Settlement Payments to DoorDash Delivery Workers
About 264,000 DoorDash delivery workers will receive a payment, including 209,000 for missing or late payments, according to DoorDash. DoorDash estimates that less than 1% of all payments to NYC DoorDash delivery workers were affected.
Workers do not need to file a claim or submit evidence. DCWP says its settlement administrator will send emails in late October to workers who experienced an underpayment from April 22, 2022, through June 28, 2026. Each email will state the amount owed.
Workers will be able to choose between an electronic payment and a check by mail. Workers who do not make a selection will receive a check at their last-known address.
Around $6.6 million in payments never reached NYC DoorDash workers. Another $5.7 million arrived days or, in some cases, weeks late. The average missing payment owed to a NYC DoorDash delivery worker is $7.70, according to DoorDash.
The company says 65% of impacted DoorDash workers were underpaid by $1 or less. The median settlement repayment will be about $48.
Impacted NYC DoorDash delivery workers will receive a minimum of $10, even if they were underpaid by less than that, according to DoorDash.
What the Settlement Says About On-Call Pay
A major part of the settlement focuses on how to calculate pay for DoorDash delivery workers when they are logged into the app but not on an active delivery, known as on-call time.
Under the rules of New York City, these workers must be paid for this time spent online between deliveries. DoorDash says it was paying workers for this time but using a different calculation method than the city prescribed.
DCWP found that DoorDash left out certain trip time and on-call time when calculating pay. DoorDash disputes the city’s interpretation but agreed to use New York City’s method going forward.
Changes Made at DoorDash
DoorDash says it has fixed technical issues that were causing errors, such as improving validation of workers’ banking information. The company says this should help catch issues before a payment is missed. It also says it has strengthened its compliance program.
But some pay-calculation issues are still being corrected, according to DCWP. A small group of workers will receive a second round of payments in early 2027 because of those issues.
DoorDash Settlement Payment Timeline
Source: NYC Department of Consumer and Worker Protection.
DoorDash also must send detailed reports to DCWP every month for three years so the agency can check whether the company is following the law and the settlement terms.
Anyone with questions about the settlement should visit the DoorDash help center or NYC’s DoorDash settlement information page.
A Settlement at Grubhub
DoorDash isn’t the only company paying delivery workers as part of a settlement. The Federal Trade Commission (FTC) began sending more than $23.8 million in refunds in August to Grubhub drivers and diners following a 2024 settlement over allegedly deceptive and unlawful practices.
The FTC is sending 640,038 checks or PayPal payments to Grubhub drivers and diners.
In 2024, the FTC and the Illinois Attorney General alleged Grubhub had exaggerated how much drivers could earn. Grubhub also was accused of blocking diners from accessing their accounts and funds.
