DCWP Names CEO of App-Based Company as a Defendant in Wage Theft Lawsuit
The NYC Department of Consumer and Worker Protection sued Motoclick and its CEO for wage theft, signaling a new approach to executive accountability.Summary
The New York City Department of Consumer and Worker Protection (DCWP), under Commissioner Samuel Levine, is aggressively pursuing consumer and worker protection, particularly against app-based delivery companies. Their first lawsuit under Levine targets Motoclick, alleging violations of minimum pay requirements, stolen earnings, and illegal fees charged to delivery drivers. Notably, the lawsuit names the CEO of Motoclick as a defendant individually, a tactic mirroring approaches used by former FTC Chair Lina Khan. Levine stated that executives should not be immune from legal consequences when breaking the law, comparing it to traffic violations. This action is part of a larger DCWP effort, including a report alleging $550 million in stolen tips from other apps and compliance warnings to the industry. Mayor Mamdani announced a new task force to combat “predatory delivery apps” and emphasized the need for increased funding for DCWP to support this expanded mandate. He stated that the DCWP will be “just as relentless in its pursuit of justice and its pursuit of fairness as companies are in their pursuit of illegality.”
(Source：National Law Review)