DoorDash Workers Claim Unpaid Wages, Seek Protection From Deportation: 'We're Not Able To Pay The Rent'

Zinger Key Points
  • DoorDash workers file claims against the company over unpaid wages in New York City.
  • A look at the claims and how Donald Trump's 2024 election win could complicate the matter.

Former DoorDash Inc DASH delivery workers are claiming they haven't been paid thousands of dollars in wages from past years and are seeking protection from deportation after Donald Trump's recent win in the 2024 election.


What Happened: A group of 95 delivery workers claim they were not paid their wages by DoorDash, one of the leading food delivery companies in the U.S., or by Motoclick, a smaller food delivery company.

Wage theft claims filed claim the workers were not paid more than $78,000 in wages, according to a report from Gothamist.

"We're not able to pay the rent or send money to our families in our own countries," Juan Iturbide, a former DoorDash delivery worker said.

Iturbide filed his claim against DoorDash with New York City's Department of Consumer and Worker Protection in 2023 according to a report from DocumentedNY.

"Delivery work is one of the most dangerous occupations in the city. In addition to risking our lives, we shouldn't have to worry about being robbed by such a wealthy company," Itrubide said, as reported by DocumentedNY. "We deserve to be paid for the service we provide."

The former delivery worker said he is owed around $1,500 by DoorDash in unpaid wages. Iturbide was deactivated by DoorDash in 2021 after five years working as a delivery driver.

Several of the workers, including Iturbide protested outside DoorDash's Manhattan headquarters on Wednesday.

One of the concerns of labor organizers helping the workers is that many claiming lost wages are immigrants without work authorization in the U.S. Bringing the claims forward could put the workers more at risk of deportation under Trump in his second presidential term, according to the report.

"If the federal government is going to fail workers, workers are going to need the protection of city and state agencies to hold these multibillion-dollar companies accountable," Worker's Justice Project executive director Ligia Guallpa said.

Read Also: DoorDash Stock Dips Slightly After Better-Than-Expected Q3 Results

Why It's Important: The claims of unpaid wages could reignite the debate of whether food delivery workers are employees or independent contractors and comes with the timing of Trump's election win and deportation promises. The report said that New York City's 60,000 delivery workers are independent contractors.

New minimum wage laws and rules for delivery workers have added to the claims from workers against delivery companies.

The unpaid wages claims have caught the attention of New York City's Department of Consumer and Worker Protection, who sent a letter to the U.S. Department of Homeland Security in September.

The letter said that immigrant workers who have filed claims should be given protection from deportation proceedings and given legal right to work in the U.S.

DoorDash spokesperson Eli Scheinholtz said it takes concerns on wage theft seriously and investigates all claims to make sure the workers "receive what they're owed."

"Here's what we know to be true: Dashers in New York City get paid for the time spent completing work on our platform, in accordance with the city's minimum pay rules. If their pay does not meet the minimum pay rate at the end of the week, then they receive an adjustment — without exception," Scheinholtz said.

DASH Price Action: DoorDash stock closed Thursday down 1.12% at $173.80 versus a 52-week trading range of $92.56 to $178.16. DoorDash stock is up 80.2% year-to-date in 2024.

Read Next:

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!