Summary
DoorDash agreed to pay $131.5 million to New York City regulators after admitting it did not pay thousands of workers correctly or on time. The settlement addresses how DoorDash calculates pay for the time delivery workers spend waiting for orders.Key Facts
- DoorDash will pay $131.5 million to settle wage claims in New York City.
- The payment resolves problems with how DoorDash pays delivery workers for idle time between orders.
- New York requires pay for all time online, not just for active deliveries.
- DoorDash said complex minimum wage changes in New York starting in 2023 contributed to the issues.
- Software problems and multi-stop deliveries also caused some late or missing payments.
- About 264,000 workers were affected, but the errors covered less than 1% of total transactions.
- Approximately $6.6 million in wages was never paid, and $5.7 million was paid late.
- DoorDash states local workers earn around $30 per active working hour on average and claims it has fixed the software bugs.
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