DoorDash settles NYC worker pay probe for 131.5 million

DoorDash has agreed to pay $131.5 million to settle allegations from New York City's Department of Consumer and Worker Protection that it underpaid and paid late thousands of delivery workers, the company said Tuesday. The settlement resolves claims of violations of the city's pay rules for delivery workers, including missed and late payments affecting roughly 264,000 workers. Of the total, $12.3 million is allocated to Dashers who were underpaid or paid late, a fine of about $16 million will be paid to the city, and more than $83 million addresses a dispute over how to calculate pay for time workers spend logged into the app but not actively on a delivery. In a statement released Tuesday, DoorDash acknowledged the errors. "Simply put, we screwed up. Our mistakes meant some Dashers were underpaid or paid late. While these mistakes weren't intentional, that doesn't make them okay," the company said. "We are sorry to the Dashers we let down." DoorDash said approximately $6.6 million in payments never reached workers, while another $5.7 million arrived days or weeks late. The company said the average missing payment owed to a Dasher was $7.