NYC Wins Record $131.5 Million From DoorDash for Underpaid Delivery Workers

New York City has reached a $131.5 million settlement with DoorDash, the largest worker settlement in the city's history, after an investigation found the company had systematically underpaid more than 260,000 delivery workers — some not at all, others late.

Triple pay for what was owed

The settlement, announced by the city's Department of Consumer and Worker Protection, sends more than $115 million directly to workers and $16 million in civil penalties and costs. Workers who were never paid will receive roughly 200% of what they were owed — a worker shorted $1,000 gets $3,000 back — while those paid late receive double.

About $83 million of the total resolves a dispute over how DoorDash compensated workers for time spent logged into the app waiting for delivery assignments, according to the city's announcement. The underpayment period covered runs from April 2022 through June 2026.

"Opaque algorithms will not have the final word"

"When a worker earns a wage, they deserve to be paid that wage — not tomorrow, not after a lawsuit, but on time and in full," said Mayor Zohran Mamdani. DCWP Commissioner Samuel A.A. Levine added that the settlement shows "opaque algorithms will not have the final word when it comes to how much they are paid."

Personalized notices go out to eligible workers starting in late October, with payments beginning this fall and a second round scheduled for early 2027. No claim form is required — payouts range from $10 to over $5,000 depending on how much each worker was shorted.