New York City Mayor Mamdani announced on Friday (January 30) that the city government has reached a settlement agreement with three major delivery platforms totaling over $5.195 million. The agreement requires the delivery platforms to refund wages, pay fines, and provide compensation to over 49,000 benefited delivery workers. Among them, Uber Eats has also agreed to reinstate the accounts of improperly locked-out delivery workers from December 2023 to September 2024, estimated to affect up to 10,000 people. The city government stated that this is the first time in New York City that “restoration of work rights” has been included as a condition of settlement in a labor law enforcement case.
This settlement stemmed from an investigation by the city’s Department of Consumer and Worker Protection (DCWP), which found that Uber Eats, Fantuan, and HungryPanda had failed to pay delivery workers the required minimum wage, violating New York City’s minimum wage regulations for delivery workers.
Under the terms of the agreement, Uber Eats will pay over $3.15 million in back wages, in addition to a $350,000 fine and costs; Fantuan will distribute over $468,000 in back wages to 285 delivery workers and pay a $52,000 fine; and HungryPanda will have to pay out $1.068 million in back wages and an additional $106,000 fine. The investigation revealed that some platforms did not pay the minimum wage for working hours during canceled orders.
In recent weeks, the city government has released investigation reports accusing some delivery and ride-hailing platforms of using algorithms to reduce labor income and has issued warnings to multiple companies to comply with relevant regulations protecting delivery workers’ rights and minimum wages in New York City.
Mayor Mamdani stated that the city government has “zero tolerance” for worker exploitation. This case not only provides tangible compensation for workers but also sets a clear boundary for businesses. DCWP Commissioner Sam Levine pointed out that through innovative regulatory systems and regular reporting mechanisms with delivery platforms, the city government quickly identifies and halts violations, ensuring that delivery workers receive their deserved wages and additional compensation.
The city government vows to continue strengthening enforcement in the future and implementing various regulations to protect the interests of delivery workers, including wage transparency, immediate and weekly payment rights, improved restroom access, and mandatory tip options on checkout pages. Additionally, the minimum hourly wage for delivery workers will increase to $22.13 in April this year.