DoorDash: 'Simply Put, We Screwed Up'

DoorDash will pay $131.5 million to settle claims that it underpaid delivery workers in New York City, Mayor Zohran Mamdani announced Tuesday. The agreement, which officials described as the largest worker settlement in city history, also requires the company to submit to a new monitoring system to ensure compliance with delivery worker pay laws in the city. In a statement, DoorDash admitted errors, saying: "Simply put, we screwed up. While these mistakes weren't intentional, that doesn't make them okay. Dashers should be paid in full, on time, every time. We are sorry to the Dashers we let down."

The AP reports most of the settlement will be returned to more than 260,000 workers who were underpaid, not paid, or paid late for deliveries by DoorDash, according to City Hall. The company will also pay about $16 million in civil penalties and other costs to the city. DoorDash said many of the errors in payment were caused by "technical bugs or happened in complicated situations," such as deliveries that went outside city boundaries, had multiple pickup or drop-off spots, or included deliveries that were canceled or partially completed. (It wasn't the first claim the company has settled involving New York delivery workers.)