New York City officials have taken legal action against the food delivery platform Motoclick, accusing the company of serious violations of the New York City Delivery Worker Protection Act. Mayor Mamdani filed a lawsuit against Motoclick in the higher court on January 15, seeking to shut down the platform.
According to Mamdani and his administration, Motoclick, a delivery service platform catering to restaurants, has been “blatantly flouting minimum wage standards and directly siphoning profits from employee wages.” The company’s tactics include charging delivery workers $10 for canceled orders and deducting refund amounts directly from employee wages – sometimes even claiming that workers owe the company money.
The New York City Department of Consumer and Worker Protection (DCWP) estimates that Motoclick owes approximately 8,000 delivery workers across the city millions of dollars in wages and compensation. The city government is actively pursuing the complete shutdown of the company.
Mayor Mamdani stated in a press conference, “Delivery workers make the daily lives of millions of New Yorkers more convenient, yet their own lives have become harder as a result.” He further added, “Today marks the end of this thankless era of exploitation. Our DCWP has started to crack down on a range of misconduct, from baseless illegal practices to deceptive tactics that harm delivery worker interests – showcasing what a government prioritizing laborers can accomplish every day.”
Simultaneously, DCWP Commissioner Sam Levine initiated a coordinated enforcement action, issuing notices to companies like Instacart, DoorDash, Grubhub, Uber, among others, warning them to comply with the new Delivery Worker Protection Act taking effect on January 26.
The legislation includes the Ground Rules 107 and 108 concerning tip protection, Rule 113 regarding transparency in delivery worker compensation, and Rules 123 and 124 expanding minimum wage coverage, ensuring timely and weekly wage payments, and enhancing restroom conditions for delivery workers.
A recent report from DCWP revealed that DoorDash and Uber designed interfaces that led to a $550 million reduction in delivery workers’ tip earnings.
DoorDash and Uber have vehemently denied these allegations and are considering counter-suing the city of New York. Motoclick has yet to issue a public statement in response.
DCWP is responsible for enforcing laws such as Vacation Law, Fair Workweek Law, and Delivery Worker Law, which includes minimum wage standards for delivery workers. The agency issues licenses to over 45,000 businesses in more than 45 industries. DCWP also provides essential services such as free tax filing and financial counseling. For more information about DCWP and its work, individuals can call 311 or visit nyc.gov/dcwp, subscribe to their newsletter, or follow them on various platforms.
Also present at the press conference were Deputy Mayor Julie Su, in charge of economic justice, and several worker rights advocacy groups.