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The
agreement, which officials descibed as the largest worker
settlement in city history, also requires the company to submit
to a new monitoring system to ensure compliance with delivery
worker pay laws in the city.
In a statement, DoorDash admitted errors, saying: “Simply put,
we screwed up.”
“While these mistakes weren’t intentional, that doesn’t make
them okay. We pride ourselves on operational excellence at
DoorDash – and this was not excellent, nor was it acceptable.
Dashers should be paid in full, on time, every time. We are
sorry to the Dashers we let down,” the company said.
Most of the settlement will be returned to more than 260,000
workers who were underpaid, not paid or paid late for deliveries
by DoorDash, according to City Hall. The company will also pay
about $16 million in civil penalties and other costs to the
city.
“When a worker earns a wage, they deserve to be paid that wage –
not tomorrow, not after a lawsuit, but on time and in full,”
Mamdani said in a statement. “DoorDash underpaid more than
260,000 workers, and today we are getting that money back."
DoorDash said many of the errors in payment were caused by
“technical bugs or happened in complicated situations,” such as
deliveries that went outside city boundaries, had multiple
pickup or drop-off spots or included deliveries that were
cancelled or partially completed.
Last year, the company agreed to pay almost $17 million to
settle claims that it unfairly used customer tips to subsidize
the wages of its delivery workers in New York, rather than
allowing drivers to keep the tips on top of their guaranteed
pay.
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