New York City Officials Crack Down on Food Delivery Apps Over Minimum Wage Violations
In a major crackdown, New York City officials have announced that tech platforms Uber Eats, Fantuan, and HungryPanda will pay millions of dollars in restitution to food delivery workers who were wrongly denied minimum wage. The settlements come as part of the city's efforts to regulate app-based businesses and protect the rights of gig economy workers.
According to officials, Uber Eats will be responsible for paying over $3.1 million to roughly 48,000 workers, with a total of $5.2 million including civil penalties and fees. The platform has also agreed to reinstate hundreds of workers who were wrongfully deactivated between December 2023 and September 2024.
Fantuan, another food delivery app, will pay more than $468,000 in restitution to nearly 300 workers, while HungryPanda will owe over $1 million in restitution to over 1,000 workers. Both companies have also been fined thousands of dollars for violating the city's minimum wage rules.
The settlements are a significant victory for delivery workers who have long complained about being underpaid and misclassified as independent contractors. "When workers speak up and they are met with silence, retaliation, or automatically removed from the app — but no more," said Aboubacar Ki, a delivery worker and organizer with the Los Deliveristas group.
The city's Department of Consumer and Worker Protection (DCWP) had investigated Uber Eats, Fantuan, and HungryPanda for violating minimum wage rules, including failing to pay workers for time spent on canceled trips. The DCWP also found that these platforms were misclassifying workers as independent contractors, denying them access to benefits and protections.
The settlements come as part of a broader shift in how the city plans to regulate app-based businesses. "The era of giant corporations juicing profits by underpaying workers is over," said DCWP Commissioner Sam Levine. The announcement also underscores the city's increasing enforcement of labor regulations, particularly for gig economy workers.
The settlement is also a major win for advocates who have pushed for stronger protections for delivery workers. The city's minimum pay rate for app-based delivery workers will rise to $22.13 an hour on April 1, a 3.2% adjustment for inflation between the end of 2024 and 2025.
Overall, the settlement marks a significant victory for delivery workers in New York City who have long been denied fair compensation and protections. The move is also seen as a major step forward in regulating app-based businesses and protecting the rights of gig economy workers.
In a major crackdown, New York City officials have announced that tech platforms Uber Eats, Fantuan, and HungryPanda will pay millions of dollars in restitution to food delivery workers who were wrongly denied minimum wage. The settlements come as part of the city's efforts to regulate app-based businesses and protect the rights of gig economy workers.
According to officials, Uber Eats will be responsible for paying over $3.1 million to roughly 48,000 workers, with a total of $5.2 million including civil penalties and fees. The platform has also agreed to reinstate hundreds of workers who were wrongfully deactivated between December 2023 and September 2024.
Fantuan, another food delivery app, will pay more than $468,000 in restitution to nearly 300 workers, while HungryPanda will owe over $1 million in restitution to over 1,000 workers. Both companies have also been fined thousands of dollars for violating the city's minimum wage rules.
The settlements are a significant victory for delivery workers who have long complained about being underpaid and misclassified as independent contractors. "When workers speak up and they are met with silence, retaliation, or automatically removed from the app — but no more," said Aboubacar Ki, a delivery worker and organizer with the Los Deliveristas group.
The city's Department of Consumer and Worker Protection (DCWP) had investigated Uber Eats, Fantuan, and HungryPanda for violating minimum wage rules, including failing to pay workers for time spent on canceled trips. The DCWP also found that these platforms were misclassifying workers as independent contractors, denying them access to benefits and protections.
The settlements come as part of a broader shift in how the city plans to regulate app-based businesses. "The era of giant corporations juicing profits by underpaying workers is over," said DCWP Commissioner Sam Levine. The announcement also underscores the city's increasing enforcement of labor regulations, particularly for gig economy workers.
The settlement is also a major win for advocates who have pushed for stronger protections for delivery workers. The city's minimum pay rate for app-based delivery workers will rise to $22.13 an hour on April 1, a 3.2% adjustment for inflation between the end of 2024 and 2025.
Overall, the settlement marks a significant victory for delivery workers in New York City who have long been denied fair compensation and protections. The move is also seen as a major step forward in regulating app-based businesses and protecting the rights of gig economy workers.
they've been speaking up and fighting for their rights, and now they're finally getting some justice 
it's crazy that companies like Uber Eats and HungryPanda were basically exploiting them by not paying minimum wage and misclassifying them as independent contractors 
but i guess this settlement is a big win for the city's efforts to regulate app-based businesses and protect workers' rights 
I mean, on one hand, $3.1 million to 48,000 workers is a pretty big deal, but on the other hand, what's to stop Uber Eats from just moving all these workers to another company and repeating the same thing? 
And what about Fantuan and HungryPanda being fined thousands of dollars... isn't that just gonna be passed on to the consumers in the form of higher prices or something? 
like, shouldn't they be treated equally just because they're working on these apps? 
. I mean, it's not right that workers are being denied minimum wage and benefits just because they're working through an app. The fact that Uber Eats is shelling out $3.1 million in restitution is a big deal - it shows they can't just sweep things under the rug anymore 
. The city's getting more serious about regulating these platforms, which means workers will finally get the fair compensation they deserve 
. That's a big deal - it shows that the city is taking gig economy workers seriously and recognizing their value 
finally some good news for those gig economy workers in NYC! I'm so tired of hearing about people getting low pay and no benefits just because they're classified as contractors 
. And yay for the increase in minimum pay rate to $22.13 an hour! That's some serious cash 
these food delivery apps think they can just do whatever they want without paying their workers properly? 
I mean, $3.1 million for Uber Eats is a huge fine, but like 48,000 workers deserve that kind of recognition! 
. And it's crazy how Fantuan and HungryPanda thought they could get away with paying less than $22.13 an hour 
! Like, these food delivery apps have been screwing over their workers for ages and now they're getting called out 
. $3.1 million is a lot of $$$ 
. And can we talk about how DCWP Commissioner Sam Levine is like, totally on point 
and this settlement is the proof 
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. That's so true! It's time for companies to start putting people first and treating their workers with respect and fairness 
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