News & Commentary

September 23, 2026

Ryan Zhang

Ryan Zhang is a student at Harvard Law School and a member of the Labor and Employment Lab.

In today’s News and Commentary, DoorDash agrees to a $131.5 million settlement over New York City delivery-worker pay, Philadelphia school support staff ratify a contract with raises and paid parental leave, and economists examine whether rising stocks are helping older workers retire.

DoorDash will pay $131.5 million to settle claims that it underpaid, failed to pay, or paid late more than 260,000 delivery workers. Most of the money will go to affected workers, while approximately $16 million will cover civil penalties and other costs paid to the city. Mayor Zohran Mamdani described the agreement as the largest worker settlement in New York’s history. It also requires DoorDash to submit detailed monthly data reports for three years disclosing its compliance with the city’s delivery-worker pay laws. The settlement comes roughly eight months after the city’s Department of Consumer and Worker Protection accused DoorDash and rival Uber Eats of using “design tricks” to deprive workers of more than $550 million in tips. DoorDash acknowledged the payment errors and apologized but said they were unintentional. The company attributed some errors to technical bugs and others to complicated deliveries, including orders that crossed city boundaries, involved multiple pickups or drop-offs, or were canceled or only partially completed.

In Philadelphia, 2,000 school bus drivers, cleaners, building engineers, mechanics, and tradespeople have approved a three-year contract. The agreement provides 9.5% raises and $2,350 in bonuses. Beginning January 1, workers will also receive 25 days of paid parental leave following the birth of a child—the first such benefit in the union’s contract with the district. Other provisions include health-care protections, more opportunities for career advancement, protections against subcontracting, and higher pay for maintenance mechanics performing asbestos work. Members, who are represented by 32BJ SEIU District 1201, voted 800–80 in favor.

Rising stock values may be encouraging older Americans to retire, according to a CNBC report. Labor-force participation among Americans age 55 and older fell from 38.6% in August 2024 to 37.2% in August 2026. Economists at Bank of America say rising stock values may be contributing to the decline by increasing the retirement savings of workers nearing retirement age. They call the trend a “stock-fueled retirement party,” while noting that the aging of the baby-boom generation and employer early-retirement offers are also factors. The benefit of those gains, however, depends on owning stocks. Workers without substantial investments do not receive the same boost to their retirement savings and still face rising living costs. The economists also told CNBC that older workers’ departures have created openings for job seekers and helped keep unemployment relatively low. They cautioned that a market downturn could lead some recent retirees to return to work.

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