View all Articles
Commentary By Jarrett Dieterle

Mamdani's $131.5 Million DoorDash Settlement Is Not What He Says It Is

Economics, Governance Labor, New York City

Photo by John Nacion/Getty Images

The mayor characterized it as a victory against corporate greed. Meanwhile, 65 percent of affected drivers were underpaid by $1 or less, and the average underpayment was $7.70.

Another day, another settlement. Last month, New York City Mayor Zohran Mamdani announced a $131.5 million settlement with DoorDash for "stealing" delivery driver wages in the Big Apple. The agreement builds on additional settlements from earlier this year with other platforms, all as part of Mamdani's "New Era of Accountability" for gig companies.

The actual details of the settlement tell a more modest story. While DoorDash did underpay a subset of workers, the average amounts at stake were relatively small. Instead, the lion's share of the settlement resulted from a dispute over how to precisely calculate driver wages—not from "stealing" wages—under NYC's minimum wage rule for gig work.

Continue reading the entire piece here at Reason

______________________

Jarrett Dieterle is a legal policy fellow at Manhattan Institute, where his work focuses on labor law, administrative law, and urban policy.