The Office of the New York State Attorney General (OAG)’s investigation of DoorDash’s hiring practices delivered a settlement costing the food-ordering juggernaut $75,000 and mandating reforms towards how the company reviews New York-based applications of prospective couriers with criminal histories. AG Letitia James announced the agreement last Wednesday, May 15.
The OAG alleges the company rejected 2,898 applicants without proper assessment as “a result of their criminal history background check adjudications” in 2022. DoorDash will reevaluate those resumes three months after the company implements a new training program on complying to the state’s employment laws regarding previous convictions. The 57 individuals who appealed their rejection will receive priority on their application reviews, and the $75,000 settlement money will be split between the qualified applicants who received a rejection.
“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,” said Attorney General Letitia James in her statement. “DoorDash ignored New York laws, discriminated against hardworking people, and denied thousands of New Yorkers the opportunity to provide for their families without fair consideration for their individual histories.”
The investigation against DoorDash stemmed from community advocates informing the OAG that the company “may have a policy or practice of routinely rejecting” prospective couriers. As a result, the Office looked into the company’s local hiring practices regarding those with criminal histories and determined the company allegedly rejected such applications without considering “the nature and gravity of the conviction and its bearing, if any, on specific responsibilities of the role sought.”
New York City’s Fair Chance Act prevents most private employers from obtaining applicant criminal history during the hiring process until after conditionally offering the position. Additionally, employers need to provide a written evaluation to renege on an offered candidate with a criminal history, along with a copy of the background check. The applicants are also granted an opportunity to respond to the rejection. The OAG’s investigation alleged that DoorDash failed to provide those notices sufficiently and most follow-ups “instead provided applicants with boilerplate language.”
On the state level, hiring discrimination due to a previous conviction is illegal under human rights law. Employers can only reject an applicant due to criminal history if the conviction is relevant to their job performance or workplace safety. Pardoned offenses, arrests ending without a conviction and adjournments in contemplation of dismissals cannot be factored in hiring at all.
Roughly 2.1 million adult New Yorkers “have a criminal conviction of some kind” according to the Brennan Center for Justice, with the state’s workforce sitting at 9.7 million people comparatively. Around 30% of those New Yorkers with a conviction record are Black, who make up just about 15% of the Empire State’s population.
DoorDash couriers are classified as independent contractors, which are protected by the laws. The settlement will not prevent the company from background checks pertaining to food delivery like motor vehicle record and sex offender registry status.
As the investigation ended in settlement, DoorDash did not admit liability or fault in the matter. The San Francisco-based company is the largest food delivery service in the country, with more than 2 million couriers last year, according to court documents. The position typically boasts a low barrier-to-entry, often only requiring a scooter, bike or car to start. Couriers are “often eligible to begin generating income within a day of signing up,” according to a company SEC filing.
“At DoorDash, we are committed to having a robust, fair and transparent background check process that balances safety and equity,” said a DoorDash spokesperson over email. “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.”
Beyond the payout, DoorDash will update the OAG on compliance with the settlement agreement over the next three years. Adjudicators—those who review applications—will be mandated to assess the context of an applicant’s conviction or open case before determining a rejection.
Tandy Lau is a Report for America corps member who writes about public safety for the Amsterdam News. Your donation to match our RFA grant helps keep him writing stories like this one; please consider making a tax-deductible gift of any amount today by visiting https://bit.ly/amnews1.