DoorDash has agreed to pay $131.5 million following a New York investigation into underpayments and delayed payments to delivery workers.

The agreement could benefit around 264,000 Dashers, according to the company, although this does not mean that everyone will receive the same amount.

  • Why it matters: The DoorDash settlement could return money to thousands of delivery workers and reinforces rules governing how much and when app-based workers in New York must be paid.

DoorDash acknowledged the errors: «In short, we messed up,» the company stated, as reported by NBC News.

How Much Money Will DoorDash Delivery Workers Receive?

Almost $115 million of the agreement is related to worker relief, while $16.7 million corresponds to penalties.

  • Within the amount for workers, $83 million relates to a dispute over how certain periods of on-call time should be calculated.
  • Another $12.3 million corresponds to payments that were omitted or arrived days or even weeks late.
  • DoorDash indicated that the median payment related to certain errors will be approximately $48, although the individual amount may vary.

The company attributed the problems to technical glitches, canceled or incomplete deliveries, orders with multiple stops, and routes that crossed city limits.

Are You Owed Money From the DoorDash Settlement in New York?

For now, the released information does not allow workers to determine exactly how much they will receive or assume that anyone who has used DoorDash will automatically qualify.

  • Delivery workers should pay attention to official communications about the agreement and review their payment records for possible discrepancies.

Currently, New York City requires apps like DoorDash to pay at least $22.13 per hour, not including tips, for time spent preparing or making deliveries.

Apps must also pay earnings at least weekly and provide detailed payment statements. Workers can file complaints with the DCWP if they believe their rights have been violated.

The Separate $550 Million Tipping Controversy

The agreement should not be confused with another controversy involving DoorDash and Uber Eats.

The DCWP previously found that changes to both apps’ interfaces made tipping more difficult and were associated with more than $550 million in lost worker compensation.

Therefore, that $550 million is not the amount DoorDash will distribute through this agreement.

For thousands of delivery workers, the case again raises a key question in the app economy: what time counts as work and how should it be paid.