Delivery app sued as mamdani administration launches crackdown on worker pay abuses

Delivery app sued as Mamdani administration launches crackdown on worker pay abuses

New York, NY – The Mamdani administration filed a lawsuit in New York State Supreme Court against delivery app Motoclick and its chief executive, accusing the company of illegally underpaying workers and violating New York City’s Delivery Worker Laws while signaling a broader enforcement push across the app-based delivery industry.

The case, brought by the Department of Consumer and Worker Protection, alleges Motoclick charged workers fees for canceled orders, deducted the full cost of refunded orders from pay, and in some cases claimed workers owed the company money. City officials estimate the company and CEO Juan Pablo Salinas Salek owe delivery workers millions in unpaid wages and damages and are seeking to shut the company down.

Mayor Zohran Mamdani announced the lawsuit alongside DCWP Commissioner Sam Levine, Deputy Mayor for Economic Justice Julie Su, and representatives from Worker’s Justice Project and Los Deliveristas Unidos, framing the action as part of an expanded effort to enforce recently enacted worker protection laws.

In addition to the lawsuit, DCWP launched a compliance blitz, sending formal notices to major delivery platforms including DoorDash, Uber, Grubhub, and Instacart, warning them to comply with a slate of new local laws taking effect January 26. The measures address minimum pay rates, tipping protections, pay transparency, weekly payment requirements, and access to bathrooms for delivery workers.

City officials cited a DCWP report released earlier this week that found DoorDash and Uber used app design practices that reduced workers’ tip earnings by an estimated $550 million. Commissioner Levine said the enforcement actions are intended to reverse worker losses and hold companies and executives accountable under city law.

Advocates representing delivery workers said the lawsuit marks a shift toward stricter oversight of app-based employers in an industry dominated by immigrant workers who rely on delivery platforms for income.

New York City has sued Motoclick over alleged wage theft while warning major delivery apps to comply with expanded worker protection laws or face enforcement.

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