Mayor Mamdani’s administration enforces minimum wage law for delivery workers in major enforcement action.
New Administration Shows Teeth in Worker Protection Enforcement
Three major delivery apps must pay $4.6 million in back wages to workers, according to a landmark enforcement action announced by Mayor Zohran Mamdani and Department of Consumer and Worker Protection Commissioner Sam Levine. The settlement represents the first major enforcement of New York City’s minimum wage law for delivery workers under the new administration and signals a commitment to holding large technology companies accountable for labor violations. UberEats, HungryPanda, and Fantuan illegally withheld wages from thousands of delivery workers, the city found. The action demonstrates that the Mamdani administration intends to prioritize worker protections and bring serious consequences for companies that exploit vulnerable gig workers.
Details of the Wage Violations
UberEats unfairly deactivated and underpaid workers between December 2023 and September 2024, resulting in $3.15 million in back wages owed to 48,602 workers. The city also assessed $350,000 in civil fines and administrative penalties against the company. Individual workers were owed between $8.79 and $276.15, depending on their specific circumstances. HungryPanda ignored the minimum wage standard entirely from December 2023 to January 2024, resulting in more than $1 million in lost wages to workers earning $7.84 hourly against the $17.96 minimum wage at that time. Fantuan similarly deprived workers of over $400,000 in wages for failing to maintain minimum wage standards.
Broader Context and Worker Advocacy
The settlement came after close examination of records submitted to the city by delivery platforms. More enforcement actions appear likely, as new worker protections took effect on January 26 that expand the minimum wage requirement to grocery delivery services like Instacart. Advocates for delivery workers emphasized that the enforcement action proves what workers have long argued: that exploitation is built into app company business models, not accidental. James Parrott, from the Center for New York City Affairs at The New School, praised the administration for leading nationally with regulations that counter online labor platform exploitation.
Implementation and Future Challenges
The Department of Consumer and Worker Protection must continue enforcement as more services become covered by the wage floor. The department’s budget will need significant expansion to meet these new responsibilities. Former Commissioner Lorelei Salas warned that without sustained enforcement and adequate resources, some companies might simply accept violations as a business cost. The City Council has signaled support for doubling the agency’s budget to enable comprehensive oversight. For more on gig worker protections, see the Commissioner’s accountability pledge and analysis of gig economy reform. Mayor Mamdani’s swift action on this issue sets an important precedent for how the administration intends to regulate corporate behavior in service of working New Yorkers.
