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Tue, 22 Sep 2026

Tue, 22 Sep 2026 'We screwed up': Doordash admits underpaying New York workers

The food delivery giant will pay a $131.5m settlement following a city probe into wage violations.

* DoorDash has agreed to pay a $131.5m settlement to New York City regulators
* The settlement resolves wage violations, including underpayment and delayed payment to thousands of workers
* DoorDash admitted "simply put, we screwed up" and said their mistakes meant some drivers were underpaid or paid late
* The majority of the payout ($83m) addresses how DoorDash calculates compensation for time delivery drivers spend waiting for orders
* New York's rules require compensation for all time logged into the app, but apps traditionally only paid during active deliveries
* DoorDash blamed "complex" changes to the minimum wage in New York state and technical glitches for causing the mistakes
* The company said local workers earn roughly $30 per active hour on average
* Systemic errors caused around $6.6m wages to never reach workers at all, and another $5.7m arrived days or weeks late