Mayor Mamdani Secures $4.6 Million Payout for NYC Delivery Workers
New York, Tuesday, 3 February 2026.
New York City enforces a $4.6 million settlement against delivery giants like Uber Eats, compensating over 48,000 drivers for underpaid wages and signaling a strict new regulatory era.
New Administration Targets Wage Theft
In a decisive move defining the early days of his tenure, New York City Mayor Zohran Mamdani has enforced a significant financial settlement against major gig economy platforms. The administration, working through the Department of Consumer and Worker Protection (DCWP), has secured $4.6 million in restitution from Uber Eats, Fantuan, and Hungry Panda [1]. This enforcement action addresses violations of the city’s minimum pay laws, specifically targeting instances where drivers were underpaid or unfairly deactivated [1][4]. The settlement signals a distinct pivot in regulatory tone for the city, with Mayor Mamdani stating that while government previously stood with wealth-accumulating companies, his administration “is standing with the people who generate it” [4].
Breakdown of Financial Penalties
The bulk of the financial recovery comes from Uber Eats, which has been ordered to pay $3,150,000 directly to workers and an additional $350,000 in civil penalties to the city [1]. This totals 3.500 million dollars in liabilities for the tech giant alone. The relief funds will be distributed among more than 48,000 workers who were subject to wage theft, with individual payouts ranging from $8.79 to $276.15 [1]. These penalties serve as a correction for labor practices that occurred between December 4, 2023, and September 2, 2024, a period during which the platforms were found to have treated compliance as optional [1].
Systemic Issues and Corporate Accountability
The investigation highlighted systemic issues within the app delivery business model, particularly regarding the deactivation of workers. James Parrott, a senior fellow at the Center for New York City Affairs, noted that platforms have historically deactivated workers “with abandon,” effectively denying them the ability to earn a living [1]. DCWP Commissioner Sam Levine was explicit in his condemnation of these practices, declaring that the era of corporations “juicing profits by underpaying workers is over” [1]. To place the financial penalty in perspective, Uber Eats generated $13.7 billion in revenue in 2024, suggesting that while the $3.5 million penalty is significant for workers, it represents a fraction of the company’s annual earnings [1].
Corporate Response and Future Outlook
In response to the enforcement, Uber spokesman Josh Gold stated that the company is glad to have the matter resolved. Gold noted that after the DCWP notified Uber of the issue in August 2024, the company “immediately corrected it” and agreed to pay more than the amount originally owed [1]. However, labor advocates like Ligia Guallpa of the Workers’ Justice Project argue that such exploitation is “baked into the app delivery business model” rather than being accidental [1]. For the Los Deliveristas Unidos collective, this victory goes beyond simple reimbursement; it stabilizes housing and food security for thousands of families who rely on these wages [4].