NYC Mayor Mamdani reaches record DoorDash settlement for underpaid workers

New York City Mayor Zohran Mamdani has announced a landmark $131.5 million settlement with DoorDash, resolving allegations that the company underpaid nearly 260,000 delivery workers. The agreement, described as the largest labor enforcement action in the city's history and the largest food delivery worker settlement nationwide, follows a years-long investigation by the Department of Consumer and Worker Protection (DCWP).

The probe found that DoorDash failed to adequately compensate workers for all hours logged, including time spent online but not actively making deliveries, and also resulted in late payments to thousands of individuals, with issues dating back to at least 2022. DoorDash acknowledged its errors, stating it "screwed up" and that while the mistakes weren't intentional, they were unacceptable.

Under the terms of the settlement, approximately $115 million will directly benefit the affected delivery workers, with an estimated median payout of about $48 per worker and a minimum payment of $10 for all impacted Dashers. The remaining $16 million will be paid in civil penalties to the city, and DoorDash is now required to submit monthly data reports for three years to ensure ongoing compliance with New York City's delivery worker pay laws.