Mamdani Secures a Multimillion-Dollar Settlement Over Delivery Worker Wage Theft
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Mamdani Secures a Multimillion-Dollar Settlement Over Delivery Worker Wage Theft
"This is the most expensive city in the United States of America, and we want to use every tool at our disposal to improve working conditions for delivery workers."
"I am left with no information about why I was deactivated from the app. I went to the Uber office and all they said was sorry, we cannot help you."
"Under the city's minimum-wage law, delivery workers must be paid for the time they've already spent on a delivery even if the customer cancels the order."
A $5.2 million settlement was secured with three delivery app companies after the city found they failed to pay minimum wage and wrongfully deactivated workers. Nearly 50,000 workers will receive back pay for time spent on deliveries canceled by customers, consistent with the city's minimum-wage law requiring payment for time already worked. The Department of Consumer and Worker Protection found that Uber Eats also used automated rules to deactivate workers and agreed to reinstate up to 10,000 workers deactivated between December 2023 and September 2024. Affected workers reported lack of explanation or assistance from the company, and the company cited independent-contractor status in defense.
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