DoorDash Settles NYC Wage Underpayment Claims for $131.5 Million

DoorDash has agreed to pay $131.5 million to resolve claims from New York City regulators that it underpaid 264,000 delivery workers, marking the largest labor settlement in the city's history, according to reporting on Hacker News (https://theintercept.com/2026/09/23/doordash-delivery-nyc-mamdani-wage-theft-settlement/).

The financial resolution follows an election cycle in which the delivery company spent approximately $1.4 million in efforts opposing Mayor Zohran Mamdani, whose administration oversaw the enforcement action. Under the settlement terms, DoorDash will pay more than $115 million in direct worker restitution and over $16 million in civil penalties and administrative fines.

The probe by the New York City Department of Consumer and Worker Protection began after dozens of couriers submitted complaints regarding missing or delayed payments. City officials stated that the inquiry found DoorDash paid workers below the municipal Minimum Pay Rate or failed to compensate them for completed shifts. As part of the three-year agreement, the company must submit monthly compliance data to city regulators and submit to independent monitoring via worker-submitted data.

The enforcement action comes after significant political spending by the delivery company during the 2025 New York City mayoral race. Campaign filings show DoorDash gave $1 million in May 2025 to Fix the City, a super PAC that mounted extensive advertising against Mamdani. The company also contributed $1.8 million to Local Economies Forward NY, which supported former Governor Andrew Cuomo.

In a public statement addressing the settlement, DoorDash acknowledged operational failures while disputing intentional wrongdoing: “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 declined to comment on its political spending.

The agreement is the latest in a series of regulatory penalties for DoorDash in New York. In May 2024, the company paid $75,000 to settle state claims over criminal background check rejections under the Fair Chance Act, followed by a $16.75 million settlement in February 2025 with the New York Attorney General regarding the use of customer tips to offset base driver compensation.