*A federal court ruling in Manhattan has paved the way for New York City’s latest delivery worker protections, rejecting an effort by DoorDash and Uber Eats to halt a new tipping requirement. The decision arrives just days before the policy is scheduled to take effect, reshaping how customers tip delivery workers across the city.
Beginning Monday, food delivery platforms must present tipping options during checkout rather than after orders are placed. The law also requires apps to set a default gratuity of at least 10%, a change city officials say will increase earnings for tens of thousands of delivery workers.
The decision supports the city’s wider efforts to oversee compensation standards for delivery workers. Officials charged that the companies’ app interface changes reduced tipping behavior, resulting in over $550 million in lost earnings for workers.
DoorDash and Uber Eats contested the regulation through joint litigation, asserting it breached their freedom of expression rights. They argued the city was forcing them to display “a government-mandated message in a prescribed manner and at a prescribed time,” and sought both an injunction and monetary damages.
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U.S. District Judge George B. Daniels disagreed, writing that the companies “have not successfully demonstrated that the balance of equities weigh in their favor and that a preliminary injunction is in the public interest.” His ruling allows the law to move forward while the broader case continues.
City Councilmember Shaun Abreu, who introduced the bill, said in the statement, “This ruling is an early win for thousands of deliveristas citywide.” The politician noted that NYC delivery workers are “often braving harsh weather conditions and using their own equipment.”
DoorDash responded with concern about potential economic consequences, warning it could “likely see an immediate dropoff in orders for New York’s small businesses.” Spokesperson Samantha Ramirez said, “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.”
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