New York Attorney General Letitia James announced a settlement with the online food delivery platform DoorDash Inc DASH. The settlement is regarding the rejection of delivery worker applicants with criminal histories.
This settlement comes after an investigation revealed that DoorDash routinely rejected applicants based on their criminal history without fair assessment, violating state human rights laws and the New York City Fair Chance Act.
DoorDash agreed to reevaluate rejected applicants, revise hiring policies, and pay a $75,000 penalty. They will distribute the penalty to qualifying applicants who were wrongfully rejected.
DoorDash will review and reconsider all 2,898 applicants who were rejected, with priority given to the 57 applicants who had submitted appeals.
Also Read: DoorDash Reports Mixed Q1 Results: EPS Miss, Sales Beat
The company also failed to provide proper notice of rights to rejected applicants, as per the statement.
Attorney General James emphasized the importance of fair hiring practices, stating that everyone deserves a second chance and the opportunity to provide for their families.
Public Advocate Jumaane D. Williams commended the settlement, highlighting the significance of fair assessment in employment.
The settlement underscores the importance of fair employment practices and provides hope for applicants with criminal histories seeking job opportunities.
Dash stock has gained 74% in the last 12 months. Investors can gain exposure to the stock via Invesco Leisure And Entertainment ETF PEJ and Invesco Food & Beverage ETF PBJ.
Price Action: DASH shares are trading higher by 0.41% at $115.15 at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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