NYC Mayor Mamdani reaches record DoorDash settlement for underpaid workers

New York City, under Mayor Zohran Mamdani, has finalized a record $131 million settlement with DoorDash concerning allegations of underpaid delivery workers. Announced on Tuesday, September 22, 2026, this settlement is the largest of its kind in any U.S. city and will impact approximately 260,000 drivers. The agreement includes $115 million to be paid directly to workers, with underpaid drivers receiving 200% of what they were owed. The settlement stems from DoorDash's failure to meet minimum pay requirements between December 2023 and June 2026, as detailed in a consent order. This enforcement action builds upon New York City's established minimum-pay rules for app-based delivery workers.

DoorDash will pay $131.5 million to New York City to settle an investigation that found the company underpaid or delayed payments to its delivery workers. This settlement, the city's largest labor enforcement action, will provide nearly $115 million in backpay to approximately 264,000 workers, with a median payout of about $48, and includes a $16.7 million civil fine. Mayor Zohran Mamdani stated that DoorDash failed to comply with a 2023 law aimed at improving delivery worker pay, attributing the issues to "greedy algorithms" and errors in calculating pay for hours worked. The company acknowledged mistakes, stating they were not intentional, and has committed to sending detailed pay data to the city monthly for three years. The settlement addresses disputes over pay calculation for workers logged in but not delivering, and missed or late payments.