New York City hit DoorDash with a $131.5 million settlement Monday over systematic underpayment of delivery workers — the largest food-delivery labor enforcement action in U.S. municipal history, according to Mayor Zohran Mamdani's office. (Fox News)
Why it matters: Mamdani has made cracking down on gig-economy delivery apps a signature piece of his young administration, and this settlement — more than 25 times the size of the $5 million deal his office struck with Uber Eats in January — shows City Hall escalating its enforcement campaign against the industry rather than winding it down. (Fox News)
Driving the news:
New York's Department of Consumer and Worker Protection found DoorDash systematically failed to count time on canceled trips and on trips that crossed city limits toward workers' paid hours, undercounting hours worked between April 2022 and June 2026. (Fox News)
The investigation examined roughly 152 million individual payments made to more than 260,000 delivery workers. (Fox News)
DoorDash will pay $115 million directly to affected workers, with individual payouts of up to $5,000 each; the remainder covers fines and required software changes. (Fox News)
Mamdani called it not "a rounding error or an accidental mistake," saying DoorDash "failed to count every hour worked by delivery workers" for years. (Fox News)
By the numbers:
$131.5 million — total settlement, the largest of its kind in U.S. municipal history per Mamdani's office.
$115 million — portion going directly to workers.
$5,000 — maximum individual worker payout.
260,000+ — delivery workers affected.
152 million — individual payments reviewed in the investigation.
April 2022–June 2026 — period covered by the probe.
$5 million — prior Uber Eats settlement with the city in January 2026, for comparison.
What they're saying: Mamdani accused DoorDash CEO Tony Xu of running a "greedy algorithm," referencing advice Xu had given business owners months earlier, and said "New York City and the tens of thousands of delivery workers who call our city home have reckoned with greed as a business model for far too long." DoorDash, for its part, admitted the fault: "Simply put, we screwed up. While these mistakes weren't intentional, that doesn't make them okay. Dashers should be paid in full, on time, every time. We are sorry to the Dashers we let down." (Fox News)
What's next:
The bottom line: Following January's Uber Eats settlement, Mamdani's office is treating labor enforcement against delivery apps as one of its most visible early wins — and DoorDash's own apology leaves the company little room to contest the underlying findings. The real test comes in late October, when the first payouts are due to land in drivers' accounts.
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