New York City reached a payment agreement with DoorDash after an investigation found the company underpaid or failed to properly pay 264,000 delivery workers. The $131.5 million payout includes $115 million for worker relief and more than $16 million in civil penalties. Mayor Zohran Mamdani stated this represents the largest labor enforcement action in American municipal history, and DoorDash will undergo three years of monitoring for its payment practices.

The city is partnering with the Workers’ Justice Project and the Workers’ Algorithm Observatory to develop software that allows delivery workers to record the DoorDash app. This tool enables workers to crowdsource data to investigate the algorithms that dictate their schedules and pay. New York City prohibits the company from penalizing workers for using the tool and will fast-track reinstatement in any retaliation cases.