Federal Judge Rejects DoorDash and Uber Eats' Bid to Block NYC Tipping Law, Legislation Takes Effect Monday
A US District Judge in Manhattan has dealt a significant blow to two food delivery giants, DoorDash and Uber Eats, by denying their request to halt the implementation of new tipping regulations in New York City. The legislation, set to take effect on Monday, requires users to be given the option to tip delivery workers at checkout, with a default tip amount of 10% or more.
The ruling comes as good news for tens of thousands of delivery workers who have been fighting for better wages and working conditions in the city. Earlier this month, regulators accused Uber and DoorDash of siphoning off millions of dollars from delivery workers after altering their apps to discourage tipping.
The ride-hailing companies had argued that the law would infringe on their constitutional right to free speech by mandating a specific message about tipping at checkout. However, Judge George B. Daniels rejected this claim, stating that the delivery apps had not demonstrated sufficient grounds for an injunction and that the public interest did not favor their request.
As a result, DoorDash has warned of an imminent drop-off in orders from small businesses once the law goes into effect. Meanwhile, local officials and worker rights groups have hailed the decision as a victory for delivery workers who often face harsh weather conditions and use their own equipment to deliver food to customers.
"We're disappointed in this ruling, but are confident in our position," said DoorDash spokesperson Samantha Ramirez. "We will continue working to prevent further losses for local businesses and higher costs for consumers."
In contrast, City Councilmember Shaun Abreu has celebrated the decision, saying it marks a major win for delivery workers who have long been underpaid and overworked.
"This ruling is an early win for thousands of deliveristas citywide, and we anticipate a victory in the ongoing case," Abreu said. "Delivery workers are often braving harsh weather conditions and using their own equipment to feed New Yorkers. This legislation will put more money in their pockets and help level the playing field."
Local worker rights groups have also praised the decision, with Ligia Guallpa of the Worker's Justice Project saying it reaffirms that delivery workers are not disposable.
"These victories matter because they reaffirm a simple truth: Delivery workers are not disposable, and app companies do not get to rewrite labor standards through app design and legal intimidation," Guallpa said.
A US District Judge in Manhattan has dealt a significant blow to two food delivery giants, DoorDash and Uber Eats, by denying their request to halt the implementation of new tipping regulations in New York City. The legislation, set to take effect on Monday, requires users to be given the option to tip delivery workers at checkout, with a default tip amount of 10% or more.
The ruling comes as good news for tens of thousands of delivery workers who have been fighting for better wages and working conditions in the city. Earlier this month, regulators accused Uber and DoorDash of siphoning off millions of dollars from delivery workers after altering their apps to discourage tipping.
The ride-hailing companies had argued that the law would infringe on their constitutional right to free speech by mandating a specific message about tipping at checkout. However, Judge George B. Daniels rejected this claim, stating that the delivery apps had not demonstrated sufficient grounds for an injunction and that the public interest did not favor their request.
As a result, DoorDash has warned of an imminent drop-off in orders from small businesses once the law goes into effect. Meanwhile, local officials and worker rights groups have hailed the decision as a victory for delivery workers who often face harsh weather conditions and use their own equipment to deliver food to customers.
"We're disappointed in this ruling, but are confident in our position," said DoorDash spokesperson Samantha Ramirez. "We will continue working to prevent further losses for local businesses and higher costs for consumers."
In contrast, City Councilmember Shaun Abreu has celebrated the decision, saying it marks a major win for delivery workers who have long been underpaid and overworked.
"This ruling is an early win for thousands of deliveristas citywide, and we anticipate a victory in the ongoing case," Abreu said. "Delivery workers are often braving harsh weather conditions and using their own equipment to feed New Yorkers. This legislation will put more money in their pockets and help level the playing field."
Local worker rights groups have also praised the decision, with Ligia Guallpa of the Worker's Justice Project saying it reaffirms that delivery workers are not disposable.
"These victories matter because they reaffirm a simple truth: Delivery workers are not disposable, and app companies do not get to rewrite labor standards through app design and legal intimidation," Guallpa said.