NYC Sues Delivery App Over Lost Pay in New Mamdani Crackdown

New York City said it’s suing a food-delivery technology provider for withholding pay from workers, signaling Mayor Zohran Mamdani’s get-tough approach to regulating app-based work.

Motoclick violated delivery worker laws by failing to pay the required minimum rate and by deducting canceled and refunded orders directly from workers’ paychecks, according to a press release from the city on Thursday. The practices allegedly left some couriers owing money to the company, which says it works with platforms such as Uber Eats, DoorDash and Grubhub.

The filing wasn’t immediately available on the New York State Supreme Court docket.

“Motoclick and its CEO tricked New Yorkers into working for their platform with false promises and then stole their tips and earnings, sometimes even driving workers into debt,” said Samuel A.A. Levine, the city’s consumer and worker protection commissioner. He said other delivery apps “should be on notice.”

Motoclick and its attorneys weren’t immediately available for comment.

Top photo: Delivery workers outside a grocery store in New York. Photographer: Yuki Iwamura/Bloomberg.