DoorDash to Pay $131.5m Over New York Delivery Worker Underpayment

DoorDash will pay $131.5 million to settle a New York City government investigation that found the food delivery company underpaid workers or delayed their pay for too long.

The settlement, announced by Mayor Zohran Mamdani, represents the city's largest labor enforcement action. It will award backpay to 264,000 delivery workers.

Mamdani condemned the company's use of what he called "greedy algorithms" in a statement on the case.

The deal advances New York City's longstanding effort to hold food delivery companies to a 2023 law intended to improve pay for delivery workers. That law set minimum pay standards for app-based couriers, and city regulators have pressed enforcement against platforms operating in the sector since its passage.

The payout ranks among the most significant financial penalties a delivery platform has faced in the United States over worker compensation. At stake is a business model built on flexible, algorithm-assisted pay, which regulators in New York have now directly challenged through enforcement.

For DoorDash, the $131.5 million settlement closes the New York investigation but signals intensifying scrutiny of pay practices across the industry. Other cities watching the outcome may pursue similar enforcement under their own minimum pay rules.