DoorDash will pay $131.5 million to settle claims that it underpaid delivery workers in New York City.

Mayor Zohran Mamdani announced the agreement on Tuesday.

Officials called it the largest worker settlement in the city's history.

The deal also requires DoorDash to accept a new monitoring system.

The system will check that the company follows delivery worker pay laws in the city.

In a statement, DoorDash admitted errors and said, "Simply put, we screwed up."

The company said the mistakes were not intentional but were still unacceptable.

It said its delivery workers should be paid in full and on time.

Most of the settlement will go back to more than 260,000 workers who were underpaid, not paid or paid late, according to City Hall.

DoorDash will also pay about $16 million in civil penalties and other costs to the city.

Mamdani said workers deserve to be paid on time and in full, not after a lawsuit.

DoorDash said many payment errors came from technical bugs or complicated situations.

These included deliveries outside city boundaries, multiple pickup or drop-off spots, and cancelled or partly completed deliveries.

Last year, the company agreed to pay almost $17 million to settle claims that it used customer tips to subsidize worker wages in New York.