New York City has reached a record $131.5 million enforcement settlement with DoorDash following an investigation into wage theft violations of the City’s Delivery Worker Laws. The settlement will provide more than $115 million directly to delivery workers and more than $16 million in civil penalties and costs. More than 260,000 delivery workers are expected to receive payments. According to the New York City Department of Consumer and Worker Protection (DCWP), this is the largest worker wage theft settlement in New York City history and the largest settlement involving food delivery workers in the United States.
The investigation began after delivery workers reported that DoorDash had failed to pay them or had paid them late for work, they had already performed. DCWP later expanded its investigation and reviewed DoorDash’s records, including more than 152 million payment transactions and 110 million working hours. DCWP found that DoorDash failed to pay some workers for work they performed, paid some workers late, and excluded certain trip and on-call time when calculating workers’ pay under New York City’s Minimum Pay Rate. DoorDash had increased its hourly pay to the required rate in December 2023 but did not include all compensable time when calculating workers’ wages.
Under the settlement, workers who were underpaid or not paid will receive compensation based on the amount they were owed. For example, a worker who was owed $1,000 but received nothing will receive $3,000, while a worker who was paid $1,000 late will receive $2,000. The settlement also requires DoorDash to make changes to its practices. For the next three years, the company must provide DCWP with monthly data reports so the agency can monitor compliance with minimum pay, trip-distance, disclosure, and pay and tip transparency requirements. DoorDash must also make software changes to ensure that compensable trip and on-call time is properly recorded.
The settlement will also create a worker-driven system to help identify future violations. Workers Justice Project and the Workers’ Algorithm Observatory are developing software that will allow delivery workers to document information about their trips and earnings and share it with DCWP.
What DoorDash Workers Should Know
Workers do not need to file a claim or provide evidence to receive payments under the settlement. DCWP has identified workers who are owed money using DoorDash’s records. Beginning in late October, the settlement administrator will send personalized emails explaining the amount each worker is owed and how to receive payment. Workers who do not select an electronic payment will receive a check at their last-known address.
A hotline is expected to become available at the end of September for workers who have questions or need to update their email address. A second round of payments is expected in early 2027 for a smaller group of workers while DoorDash corrects additional issues involving the calculation of compensable time. New York City’s Minimum Pay Rate for food delivery workers is currently $22.13 per hour, excluding tips, and is adjusted annually for inflation. Workers who believe their rights have been violated may also file a complaint with DCWP.
At Pechman Law Group, we represent workers in wage theft matters and are committed to helping workers recover the wages they have earned. If you believe you have been the victim of wage theft or other workplace violations, please contact the attorneys at Pechman Law Group at 212-583-9500.
