New York Attorney General Letitia James announced a settlement with DoorDash for alleged discrimination against 2,898 driver applicants who had criminal histories, in violation of the New York City Fair Chance Act and corrections laws. DoorDash will pay a penalty of $75,000, which will be distributed to qualifying applicants. The delivery company also agreed to reevaluate hiring determinations and make other changes. It will also reconsider applicants who were rejected.
“The law is very clear on the rights that all New Yorkers, including those with criminal histories, have when it comes to pursuing job opportunities,” James said in a press release. “The Fair Chance Act requires the employers assess job applicants on their merits and qualifications and potential criminal history cannot be taken into consideration until after a job offer is made.”
Some applicants were not provided the opportunity to explain the circumstances of their case or efforts toward rehabilitation, according to the office.
“At DoorDash, we are committed to having a robust, fair and transparent background check process that balances safety and equity,” a company spokesman said in an email to SIA. “While we believe that our processes complied with New York law, we are pleased to have resolved this matter, and look forward to continuing to offer a flexible way for thousands of New Yorkers to earn.”
The settlement was related to process and how background checks were reviewed, according to the company. DoorDash did not admit liability. The settlement also does not prevent DoorDash from obtaining criminal history information, which it still reviews. The company also said the settlement was a fraction of what the Attorney General has sought from other companies, which could exceed hundreds of millions of dollars.
The company had announced May 16 that New York City’s minimum payment regulation for app-based food delivery workers — which went into effect in December 2023 — has resulted in 850,000 fewer orders for restaurants and $17 million less in revenue. The number of drivers, or Dashers as the company calls them, has fallen 20%.