'We screwed up': Doordash admits underpaying New York workers
The settlement marks another chapter in an ongoing battle between so-called gig economy platforms and municipal leaders.The likes of Uber Eats and Grubhub have repeatedly clashed with city officials over tipping laws, minimum wages and data-sharing requirements. San Francisco-based DoorDash blamed "complex" changes to the minimum wage in New York state introduced in 2023. Under the landmark minimum pay standard for app-based delivery workers, wages differ depending on the county, tipping and how many people work for the employer.DoorDash also cited technical glitches and multi-stop delivery routes for causing the firm to underpay workers or delay wages.
- ▪The settlement marks another chapter in an ongoing battle between so-called gig economy platforms and municipal leaders.The likes of Uber Eats and Grubhub have repeatedly clashed with city officials over tipping laws, minimum wages and data
- ▪San Francisco-based DoorDash blamed "complex" changes to the minimum wage in New York state introduced in 2023.
- ▪Under the landmark minimum pay standard for app-based delivery workers, wages differ depending on the county, tipping and how many people work for the employer.DoorDash also cited technical glitches and multi-stop delivery routes for causin
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'We screwed up': Doordash admits underpaying New York workersImage source, Getty ImagesByFrancisco VelasquezBusiness reporterPublished2 minutes agoDoorDash has agreed to pay a $131.5m (£99m) settlement to New York City regulators after the food delivery giant admitted failing to compensate thousands of workers correctly or on time. "Simply put, we screwed up," DoorDash said. "Our mistakes meant some Dashers were underpaid or paid late."The agreement with the Department of Consumer and Worker Protection follows a city investigation into wage violations, with a significant share of the payout addressing how DoorDash calculates compensation for the time delivery drivers spend waiting for orders.
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