DoorDash, the largest food-delivery firm in the US by market share, has agreed to a $131.5 million settlement with New York City to resolve a probe into wage violations and compliance with minimum-pay rules for couriers.
The settlement follows a government investigation which found that the company underpaid delivery workers or waited too long to provide payment. The agreement will result in backpay for 264,000 workers, including $12.3 million in direct payments to delivery drivers on the platform.
Mayor Zohran Mamdani called the settlement the city's largest labor enforcement action and condemned the use of greedy algorithms. The move advances the city's longstanding effort to hold food delivery companies to a 2023 law intended to improve pay for delivery workers.
This settlement is the largest of its kind in any US city and will allow for closer monitoring of the company's payment methods.