A federal judge in Manhattan has denied a request from DoorDash and Uber Eats to block new legislation in New York City requiring a more prominent tipping option for delivery workers. The ruling comes just days before the law takes effect on Monday.
New Tipping Rules Take Effect
The legislation mandates that users be presented with the option to tip delivery workers during the checkout process, rather than after an order is placed. A default tip of at least 10% will also be required. This decision supports the city’s broader efforts to regulate wages and working conditions for delivery personnel, including previously established minimum wage requirements.
Uber and DoorDash jointly filed a lawsuit last month, claiming the law would violate their First Amendment rights by forcing them to deliver a “government-mandated message.” They sought an injunction and monetary compensation. However, U.S. District Judge George B. Daniels determined the apps had not demonstrated a basis for either.
Concerns Raised by Delivery Apps
DoorDash expressed concern that the new law “likely see an immediate dropoff in orders for New York’s small businesses.” DoorDash spokesperson Samantha Ramirez stated the company remains “confident in our position and will continue working to prevent further losses for local businesses and higher costs for consumers.” Attorneys representing Uber Eats did not respond to requests for comment.
City Councilmember Shaun Abreu, who introduced the legislation, celebrated the ruling as a “milestone win” for delivery workers who “are often braving harsh weather conditions and using their own equipment.” Ligia Guallpa, of the Worker’s Justice Project and Los Deliveristas Unidos, added that the decision reaffirms that “delivery workers are not disposable.” Samuel Levine, commissioner of the city’s Department of Consumer and Worker Protection, stated the ruling confirms that “multibillion-dollar companies need to comply with laws that protect workers and consumers.”
Frequently Asked Questions
What does this legislation require?
The new law requires users of delivery apps to be given the option to tip their delivery workers at checkout, and sets the default tip to at least 10%.
Why did DoorDash and Uber Eats sue the city?
DoorDash and Uber Eats argued that the law violated their constitutional rights to free speech by requiring a “government-mandated message.”
What is the city’s position on this matter?
City officials believe the legislation protects workers and ensures fair compensation, and that companies must comply with laws designed to protect both workers and consumers.
It remains possible that DoorDash and Uber Eats will pursue further legal challenges. The outcome of the ongoing case could determine the long-term impact of the legislation on delivery workers and the companies that employ them. A possible next step is an appeal of Judge Daniels’ decision.
