New York City Secures Record $131 Million DoorDash Settlement Over Underpaid Dashers

New York City announced a record $131.5 million settlement with DoorDash after a probe found the company systematically underpaid delivery workers from 2022 to 2026. About 260,000 workers will receive direct payments totaling $115 million (with some eligible for up to $5,000 each), while the remainder funds fines and a three-year program for the city to collect and analyze worker-pay data. The deal also requires ongoing reporting of payments and gives workers the ability to crowdsource data to scrutinize the app’s pay algorithms. Mayor Mamdani criticized DoorDash’s CEO over the so-called 'greedy algorithm,' while the company apologized for unintentional underpayments.