DoorDash has agreed to pay $131.5 million to settle claims that it underpaid delivery workers in New York City, according to Mayor Zohran Mamdani. This settlement is described as the largest worker settlement in the city’s history and includes new requirements for the company to submit to a monitoring system that ensures compliance with local laws regarding delivery worker pay. In a statement, DoorDash admitted to making errors, saying, “Simply put, we screwed up.” The company acknowledged that although the mistakes were not intentional, they were not acceptable. Most of the settlement will be returned to more than 260,000 workers who were underpaid, not paid, or paid late for deliveries. In addition, DoorDash will pay about $16 million in civil penalties and other costs to the city. According to City Hall, the goal of the settlement is to return the wages to the affected workers. Mayor Mamdani emphasized, “When a worker earns a wage, they deserve to be paid that wage – not tomorrow, not after a lawsuit, but on time and in full.” DoorDash attributed many of the payment errors to “technical bugs” or complicated situations, such as deliveries that went outside of city boundaries, had multiple pickup or drop-off points, or involved cancelled or partially completed orders. These issues, the company said, made it difficult to ensure accurate and timely payments to delivery workers. This is not the first time DoorDash has faced legal challenges in New York. Last year, the company agreed to pay nearly $17 million to settle claims that it unfairly used customer tips to subsidize the wages of its delivery workers, rather than allowing drivers to keep the tips in addition to their guaranteed pay. The latest settlement reflects ongoing efforts by city officials to hold companies accountable for fair labor practices and ensure that workers are compensated properly.