A federal judge in Manhattan has denied DoorDash and Uber Eats’ plea to keep New York City from enacting new tipping legislation, aimed at putting more money in the pockets of tens of thousands of delivery workers.
The court decision comes days before new legislation takes effect Monday. It requires that users be given the option to tip delivery workers at checkout, instead of after placing their orders, and sets the default tip to at least 10%.
It bodes well for the city’s ongoing efforts to regulate wages and working conditions for delivery workers, including setting minimum wage requirements in recent years. Earlier this month, city regulators accused Uber and DoorDash of costing delivery workers more than $550 million after altering their apps’ interfaces in order to discourage users from tipping.
Uber and DoorDash had filed the joint lawsuit last month, arguing that the city would violate their constitutional rights to free speech by requiring “a government-mandated message in a prescribed manner and at a prescribed time.” The lawsuit called on the Southern District of New York to order an injunction on the law and monetary compensation for the tech giants.
But U.S. District Judge George B. Daniels denied the request, writing that the delivery apps “have not successfully demonstrated that the balance of equities weigh in their favor and that a preliminary injunction is in the public interest.”
A DoorDash spokesperson said the delivery app would “likely see an immediate dropoff in orders for New York’s small businesses” once the legislation goes into effect.
“We’re disappointed in this ruling, but are confident in our position and will continue working to prevent further losses for local businesses and higher costs for consumers,” DoorDash spokesperson Samantha Ramirez said.
City Councilmember Shaun Abreu — who introduced the tipping legislation — lauded the decision on Friday, calling it a milestone win for delivery workers who are “often braving harsh weather conditions and using their own equipment” to feed New Yorkers.
“This ruling is an early win for thousands of deliveristas citywide, and we anticipate a victory in the ongoing case,” Abreu said in the statement.
Local workers’ rights groups also praised the ruling, including Ligia Guallpa, who heads the Worker’s Justice Project and cofounded Los Deliveristas Unidos.
“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 in a statement shared with Gothamist.
Samuel Levine, the commissioner of the city’s Department of Consumer and Worker Protection, said in a statement the court ruling “affirms that multibillion-dollar companies need to comply with laws that protect workers and consumers.”
Attorneys representing Uber Eats in the lawsuit did not immediately respond to requests for comment from Gothamist.
This story has been updated with more information.
