New York City Mayor Zohran Mamdani has announced a major settlement with food delivery platform DoorDash that will return at least $104 million (£77.34 million) to tens of thousands of delivery workers after an investigation found the company used customer tips to subsidise workers’ guaranteed pay rather than providing them on top of their earnings.
The agreement, announced by the New York Attorney General’s Office, resolves allegations that DoorDash’s previous payment model misled both customers and delivery workers between 2017 and 2019. Under the settlement, eligible delivery workers will receive compensation, while the company has agreed to change aspects of its payment practices to improve transparency. DoorDash has denied wrongdoing but said it was pleased to resolve the matter.
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