New York City Settles with Uber Eats and Other Food Delivery Apps Over Minimum Wage Violations
A $5.2 million settlement has been reached between the city of New York, Uber Eats, Fantuan, and HungryPanda, two other food delivery apps, to resolve allegations that these companies failed to pay their delivery workers a minimum wage as required by law.
Uber will be paying out over $3.1 million in restitution to approximately 48,000 workers across the city, with an additional $350,000 set aside for civil penalties and fees. The company has also agreed to reinstate hundreds of workers who were wrongly deactivated between December 2023 and September 2024.
Meanwhile, Fantuan will be paying more than $468,000 in restitution to nearly 300 workers, while HungryPanda owes over $1,100 in restitution to more than 1,000 workers. Both companies also face penalties totaling $52,000 and $106,000, respectively.
The settlement is the result of an investigation by the city's Department of Consumer and Worker Protection (DCWP), which found that Uber failed to pay delivery workers for time spent on canceled trips, while Fantuan and HungryPanda were found to have violated minimum pay rules.
"This is a significant victory for the thousands of New York City workers who have been denied their fair wages," said DCWP Commissioner Sam Levine. "The era of giant corporations juicing profits by underpaying workers is over."
The settlement underscores a broader shift in how the city plans to regulate app-based businesses, with officials emphasizing the need for greater protection for gig economy workers.
As part of this effort, the city has recently passed legislation that protects app-based for-hire drivers against sudden deactivation from platforms like Uber and Lyft. The new law aims to provide greater stability and security for workers in these industries.
The settlement also comes as enforcement efforts by the Mamdani administration increase, with the DCWP issuing warnings to over 60 companies about complying with new worker protection laws. A Manhattan federal judge last week denied DoorDash and Uber Eats' request to block the city from implementing new tipping rules for delivery workers, which will require customers to be given the option to tip workers at checkout.
The minimum pay rate for app-based delivery workers in New York City is set to increase to $22.13 an hour on April 1, a 3.2% adjustment for inflation between the end of 2024 and 2025. The city has also extended minimum wage requirements to grocery delivery apps, such as Instacart.
The Los Deliveristas group, which represents delivery workers, welcomed the settlement, saying that it marks an important turning point in the fight for fair wages and working conditions for these workers.
"When workers speak up and are met with silence, retaliation, or automatic removal from the app," said Aboubacar Ki, a delivery worker and organizer. "The era of app impunity is over. We are 80,000 strong, and we'll be holding you accountable."
A $5.2 million settlement has been reached between the city of New York, Uber Eats, Fantuan, and HungryPanda, two other food delivery apps, to resolve allegations that these companies failed to pay their delivery workers a minimum wage as required by law.
Uber will be paying out over $3.1 million in restitution to approximately 48,000 workers across the city, with an additional $350,000 set aside for civil penalties and fees. The company has also agreed to reinstate hundreds of workers who were wrongly deactivated between December 2023 and September 2024.
Meanwhile, Fantuan will be paying more than $468,000 in restitution to nearly 300 workers, while HungryPanda owes over $1,100 in restitution to more than 1,000 workers. Both companies also face penalties totaling $52,000 and $106,000, respectively.
The settlement is the result of an investigation by the city's Department of Consumer and Worker Protection (DCWP), which found that Uber failed to pay delivery workers for time spent on canceled trips, while Fantuan and HungryPanda were found to have violated minimum pay rules.
"This is a significant victory for the thousands of New York City workers who have been denied their fair wages," said DCWP Commissioner Sam Levine. "The era of giant corporations juicing profits by underpaying workers is over."
The settlement underscores a broader shift in how the city plans to regulate app-based businesses, with officials emphasizing the need for greater protection for gig economy workers.
As part of this effort, the city has recently passed legislation that protects app-based for-hire drivers against sudden deactivation from platforms like Uber and Lyft. The new law aims to provide greater stability and security for workers in these industries.
The settlement also comes as enforcement efforts by the Mamdani administration increase, with the DCWP issuing warnings to over 60 companies about complying with new worker protection laws. A Manhattan federal judge last week denied DoorDash and Uber Eats' request to block the city from implementing new tipping rules for delivery workers, which will require customers to be given the option to tip workers at checkout.
The minimum pay rate for app-based delivery workers in New York City is set to increase to $22.13 an hour on April 1, a 3.2% adjustment for inflation between the end of 2024 and 2025. The city has also extended minimum wage requirements to grocery delivery apps, such as Instacart.
The Los Deliveristas group, which represents delivery workers, welcomed the settlement, saying that it marks an important turning point in the fight for fair wages and working conditions for these workers.
"When workers speak up and are met with silence, retaliation, or automatic removal from the app," said Aboubacar Ki, a delivery worker and organizer. "The era of app impunity is over. We are 80,000 strong, and we'll be holding you accountable."
. but for real tho, $5.2 million is a small price to pay when u got thousands of people fighting for their rights. its about time these food delivery apps stepped up and paid their workers the minimum wage they're owed 
they're basically saying if you work for us, you do it for cheap! $5.2 million is a lot of $$$ though hopefully it's enough to cover all the workers who got screwed over 
I'm so glad to see Uber, Fantuan, and HungryPanda paying out millions to their underpaid workers! $5.2 million is a huge amount that should bring some much-needed financial stability to these workers 
It's like, we've been saying this for years, but finally, the city is taking action! The new laws and regulations are going to make a huge difference in the lives of these workers 
! $5.2 million is a big chunk of change for those workers who were underpaid or wrongfully deactivated by Uber Eats & friends. I mean, it's not like they didn't see it coming - the city's been cracking down on these gig economy giants for years. But seriously, this is a major win for workers' rights in NYC. The fact that Fantuan and HungryPanda are being held accountable too is a big deal. It shows that the city's commitment to regulating these apps isn't just empty words - it's action 
. Bring on April 1st, when those minimum wage rates go up! 
It's a huge win for gig economy workers, and it shows that the city is finally taking their rights seriously 
. I'm all about empowering people to take control of their own lives, and this settlement is proof that collective action can lead to real change 
just think about it, companies like Uber Eats making billions while workers get screwed... $5.2 million for 48k+ workers 
#WorkerRights #GigEconomyReform #FairPayForAll
. I mean $5.2 million is a ton of money but what's even more satisfying is that Uber, Fantuan and HungryPanda have gotta pay up and give their workers the minimum wage they're owed 
. It's about time we start holding these big players accountable for treating their employees with respect 
I'm so proud of those workers who fought for their rights! It's amazing that the city came together to make sure they get paid what they're owed. Uber Eats should've been paying those delivery folks a living wage all along 
. The fact that Fantuan and HungryPanda are getting in trouble too is awesome, because if one bad apple doesn't get away with it, no one does 
. The Los Deliveristas group is doing amazing work organizing those workers and speaking truth to power 
.
. The fact that DCWP Commissioner Sam Levine is calling out the gig economy for exploiting workers feels super justified to me 
.
But seriously, $5.2 million is a big chunk of change, so I guess the city's doing its part to protect workers 
.
. And can we talk about how app-based delivery work has become the norm? It's like, we're living in a whole new world now 
. Anyway, this settlement is just another step towards making sure gig economy workers get paid what they're worth 
. But hey, at least the city's taking steps to regulate them and give workers some protection 
! $5.2 million settlement just to make Uber Eats and Fantuan happy? Meanwhile, the workers were working their butts off with no pay for canceled trips...it's a classic case of corporate greed covering up their tracks 
. The city is just trying to buy some votes, that's all...it's just a PR stunt 
.
. Now we just need to see more companies follow suit