A major food delivery company has agreed to pay $131.5 million to resolve a New York City investigation into underpayment and delayed wages for hundreds of thousands of workers, marking the city’s largest labor enforcement action to date. The settlement follows a 2023 law aimed at protecting delivery worker compensation, with officials criticizing the use of automated systems that allegedly shortchanged earnings. Mayor Zohran Mamdani condemned the practice as exploitative, framing the case as part of broader efforts to enforce fair labor standards in the gig economy. The move could set a precedent for how cities regulate pay fairness in digital labor platforms.
Company to award backpay to 264,000 workers as mayor Zohran Mamdani condemns use of ‘greedy algorithms’DoorDash said it would pay $131.5m to settle a New York City government investigation that found the food delivery company underpaid or waited too long to pay workers.Mayor Zohran Mamdani called the settlement the city’s largest labor enforcement action. It advances the city’s longstanding effort to hold food delivery companies to a 2023 law intended to improve pay for delivery workers. Continue reading...
