The Mamdani administration is seeking a court order to shut down the delivery platform Motoclick after the company admitted to paying workers as little as $1.82 per hour. City officials filed the request in federal court on Wednesday, citing evidence that the company consistently violated New York City’s $22.13 minimum pay standard for delivery workers throughout the spring.
Did You Know? Motoclick operates as a “business-to-business” service that fulfills orders for larger apps like Uber Eats and DoorDash, utilizing a model that the city compares to the defunct delivery app Relay, which previously faced scrutiny for attempting to circumvent minimum wage standards.
Evidence of Wage Violations
According to court filings submitted by the city, Motoclick self-reported paying workers between $3.67 and $4.67 per hour in May, following an April rate that dipped as low as $1.82. The Department of Consumer and Worker Protection (DCWP) launched its investigation in February 2024 after receiving complaints from more than 20 workers alleging systemic wage theft and illegal fee deductions.
The city’s lawsuit, which names CEO Juan Pablo Salinas Salek, alleges that the company used WhatsApp to recruit Spanish-speaking immigrants and subjected them to predatory practices. This included assigning deliveries without disclosing pay or distance, as well as charging workers $10 fees for cancelled orders that occasionally left them with a negative account balance.
The Regulatory Challenge
Corporation Counsel Steve Banks stated that the city would not tolerate companies that abuse workers and violate local laws. While Motoclick and Salek have denied the allegations, they have also argued in court filings that New York City’s minimum wage law is unconstitutional. This legal defense has been unsuccessfully deployed by other app-based delivery companies in previous litigation.
Expert Insight: The city’s aggressive pursuit of Motoclick reflects a broader, ongoing conflict between the DCWP and app-based delivery services. By seeking an immediate halt to operations, the administration is testing the limits of its enforcement power, attempting to establish that the city’s labor standards remain binding regardless of a company’s internal business model or claims of constitutional exemption.
What Happens Next
A federal judge will now consider the city’s request to halt Motoclick’s operations pending the outcome of the lawsuit. If granted, the company could be forced to cease all business in New York City immediately. The outcome of this case may set a precedent for how the city handles “business-to-business” platforms that claim to operate outside the scope of standard delivery worker regulations.
Frequently Asked Questions
Why is the city trying to shut down Motoclick?
The city alleges that Motoclick has engaged in “brazen” wage theft, paying workers as little as $1.82 per hour despite a local minimum pay requirement of $22.13.
How did Motoclick respond to the city’s investigation?
After a nine-month period of silence following an initial inquiry, the company’s assistant manager claimed they were unaware of the city’s minimum pay standards. In court filings, the company has denied the allegations and challenged the constitutionality of the wage law.
What is Motoclick’s business model?
Motoclick acts as a middleman, contracting with restaurants to fulfill delivery orders placed through major platforms like Uber Eats, Grubhub, and DoorDash, often using WhatsApp and the “Moto Driver” app to manage its workforce.
How do you think city officials should balance the growth of new delivery platforms with the need to protect worker wages?
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