Mamdani Announces Record Settlement for DoorDash Delivery Workers

New York City has reached a record settlement of more than $131 million with DoorDash over allegations that the delivery company underpaid workers.

The settlement, announced by New York City Mayor Zohran Mamdani’s administration on Tuesday, September 22, 2026, is the largest settlement involving delivery workers reached by any US city and is expected to benefit about 260,000 delivery drivers.

Under the agreement, $115 million will be paid directly to affected workers, while about $16 million will cover civil penalties and other costs.

A nearly 70-page consent order from the city’s Department of Consumer and Worker Protection found that DoorDash failed to pay some workers the minimum amount required by New York law between December 2023 and June 2026.

DoorDash acknowledged that about $6.6 million in payments did not reach delivery drivers, while more than $5.7 million in payments were made late.

The company said it would notify affected workers in the coming weeks. City officials said they had already identified the workers involved using DoorDash’s records.

Under the settlement, workers will receive 200 percent of the amount they were originally owed. For example, a worker who was owed $1,000 but received nothing would receive $3,000, while someone who received $1,000 late would receive $2,000.

Mamdani said workers should receive their wages “on time and in full.”

The city’s enforcement effort began under former Mayor Eric Adams, whose administration introduced a minimum-pay rule for app-based delivery workers in 2023. The rule initially required companies such as DoorDash, Grubhub and Uber to pay covered workers at least $17.96 per hour, with the rate later rising to $19.96 per hour.

Samuel Levine of the Department of Consumer and Worker Protection said the Mamdani administration had expanded enforcement efforts by increasing staffing and using lawyers, investigators, data scientists and economists to identify violations.

Other US cities have also introduced measures to protect delivery workers. Seattle, for example, has a minimum-payment system for delivery drivers. In August, Uber Eats agreed to pay nearly $4.4 million to settle allegations that it violated Seattle’s minimum-pay rules, affecting about 14,000 workers.

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