New York City Mayor Zohran Mamdani has begun enforcing stricter rules on gig companies through lawsuits and settlements.
Mayor Zohran Mamdani appointed Samuel Levine to lead the Department of Consumer and Worker Protection. The department has pursued enforcement of a 2023 minimum wage law for app-based delivery workers and a rule on tipping prompts. The city filed a lawsuit against Motoclick and reached a $5 million settlement with Uber Eats, HungryPanda, and Fantuan. Uber Eats was described in the settlement as mostly compliant, with shortfalls tied to canceled deliveries. The minimum wage has raised delivery costs by 10 percent and reduced tips by nearly 50 percent. Some drivers have been placed on waiting lists, limiting access to work. Mamdani stated the measures aim to improve conditions in the most expensive U.S. city.
