NYC Mayor Mamdani Widens Delivery-App Crackdown With Lost-Pay Lawsuit

New York City is taking a tougher stance on regulating app-based work, beginning with a lawsuit against Motoclick, a food-delivery technology provider. The city alleges Motoclick violated worker laws by failing to pay the required minimum rate and improperly deducting costs from workers’ paychecks, resulting in some couriers owing money to the company. City officials claim Motoclick and its CEO, Juan Pablo Salinas Salek, owe workers millions in unpaid wages and damages and are seeking to shut down the company.

This lawsuit is part of a larger effort to enforce new worker protections for delivery drivers, including rules on tipping, pay transparency, and timely payments. The city has also sent notices to major platforms like Uber Eats, DoorDash, Grubhub, and Instacart, warning them to comply. A recent city report accused DoorDash and Uber Eats of depriving workers of over $550 million in tips through app interface changes.

Mayor Zohran Mamdani emphasized his administration’s commitment to protecting workers, stating they will support workers who are being exploited. The city’s approach is informed by the work of Lina Khan, former FTC chair, who advocates for utilizing local legal authority to regulate powerful companies and scrutinize the systems governing worker pay and compensation.

(Source：Insurance Journal)