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(Sharecast News) - DoorDash has agreed a $131.5m settlement with New York City over underpayments and late payments to delivery workers, admitting that it had "screwed up" in complying with the city's pay rules.
The food delivery group said the settlement with the Department of Consumer and Worker Protection includes $12.3m for workers who were underpaid or paid late, more than $83m to resolve a dispute over how pay should be calculated for time spent logged into the app between deliveries, and $16.7m in fines.
Around 264,000 delivery workers will receive payments, including 209,000 affected by missing or late payments. DoorDash said less than 1% of all payments to New York City workers were affected.
The company said around $6.6m of payments never reached workers, while a further $5.7m arrived days or, in some cases, weeks late.
"We screwed up, and our mistakes meant some NYC Dashers were underpaid or paid late," DoorDash said in a statement.
"We're making things right by paying every Dasher what they're owed and fixing what caused this. We want to be upfront about what happened, our settlement, and what we're doing."
DoorDash attributed many of the errors to technical bugs and complicated deliveries involving city boundaries, multiple stops or cancellations, as well as incomplete banking information.
The group said it had fixed the technical issues, strengthened its compliance programme and would use the city's preferred method for calculating so-called on-call time going forward.
DoorDash added that it had already set aside the full settlement amount in previous quarters.
The Nasdaq-listed stock was up 1.1% at $195.90 by 1103 BST.
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