DoorDash reaches $131.5 million settlement with NYC over delivery workers' pay

By Reuters News

NEW YORK, Sept 22 (Reuters) - DoorDash DASH.O said on Tuesday it reached a $131.5 million settlement of a New York City government probe that found the food delivery company underpaid or waited too long to pay workers.

The settlement with the city's Department of Consumer and Worker Protection includes a $16.7 million fine, and more than $83 million to resolve a dispute over how to calculate pay for workers who were logged into the app and on-call but not actually making deliveries, DoorDash said.

DoorDash said it would also provide additional worker remedies, including $12.3 million for payments that were missed or arrived days or weeks late.

"Simply put, we screwed up," the San Francisco-based company said in a statement. "Our mistakes meant some Dashers were underpaid or paid late. While these mistakes weren't intentional, that doesn't make them okay."

DoorDash said many errors resulted from deliveries that crossed city boundaries, had multiple pickup or drop-off locations, or were only partially fulfilled or canceled. It said other errors resulted from technical bugs, or having incomplete banking information for workers.

The company said it has fixed technical issues that caused the mistakes.

DoorDash and delivery app rivals including Grubhub and Uber Eats UBER.N have had multiple legal battles with New York City, including challenges to its tipping laws and whether they must share customers' data with restaurants.

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