We show that the dynamic response of electrically pumped semiconductor quantum dot lasers can be quantitatively understood by including the strongly nonlinear character of electron-electron scattering processes. The numerical simulations presented here combine a microscopic approach used for calculating the nonradiative scattering rates with a rate equation model used for modeling the complex dynamic turn-on behavior. Simulated turn-on delay, relaxation oscillation frequency, small-signal modulation response, and eye patterns of the quantum dot laser are presented and compared with experimental results at an emission wavelength of 1300 nm. The strong damping of the relaxation oscillations is attributed to an anomalous mechanism which involves Auger capture, including the mixed electron-hole process from the wetting layer ͑WL͒ into quantum dot states, and relies upon the pump current dependent ratio of WL electron and hole densities.