DoorDash Fined $131.5M for Underpaying New York Delivery Workers

DoorDash has agreed to pay $131.5 million to settle a New York City investigation that found the food delivery company failed to adequately compensate its workers. This settlement, hailed as the city's largest labor enforcement action, aims to rectify underpayments and delays in pay for approximately 264,000 delivery personnel.

The agreement is a significant step in the city's ongoing efforts to enforce a 2023 law designed to improve pay standards for food delivery workers. Mayor Zohran Mamdani criticized the company's practices, attributing the issues to "greedy algorithms" that impacted worker earnings.