NEW YORK CITY, New York: DoorDash will pay US$131.5 million to settle a New York City government investigation into allegations that delivery workers were underpaid or received their wages late, the company said.

The agreement with the city's Department of Consumer and Worker Protection includes a $16.7 million fine and nearly $115 million in relief for about 264,000 workers, whom DoorDash calls Dashers.

The settlement comes nearly eight months after the city agency accused DoorDash and rival Uber Eats of using what it called "design tricks" to deprive workers of more than $550 million in tips.

Uber did not immediately respond to requests for comment.

Of the relief being provided by DoorDash, $83 million will resolve a dispute with the city over how pay should be calculated for workers who were logged into the app and available for work but were not making deliveries. Another $12.3 million covers payments that were either missed or arrived days or weeks late.

"Simply put, we screwed up," the San Francisco-based company said in a statement. "Our mistakes meant some Dashers were underpaid or paid late. While these mistakes weren't intentional, that doesn't make them okay."

DoorDash said the median payout will be about $48.

The company said many of the errors involved deliveries that crossed New York City boundaries, included multiple pickup or drop-off locations, or were only partially completed or canceled.

Other mistakes resulted from technical bugs or incomplete banking information for workers, according to DoorDash. The company said it has fixed the technical problems that caused the errors.

The Department of Consumer and Worker Protection and the office of New York City Mayor Zohran Mamdani did not immediately respond to requests for comment.

DoorDash and other delivery apps, including Grubhub and Uber Eats, have been involved in multiple legal disputes with New York City, including challenges involving the city's tipping laws and requirements to share customer data with restaurants.