NEW YORK – Two of the largest food-delivery companies are attempting to block New York City’s new tipping laws, set to take effect in January, just as the city prepares to welcome its next mayor, who has been openly critical of the industry.
The new regulations require apps to suggest a minimum tip of 10 percent at checkout, though customers can choose to tip more, less, or nothing at all. The move comes after tipping for delivery workers dropped when some apps shifted the tipping option to appear only after orders were completed. The law builds on New York City’s 2023 minimum pay standard for delivery workers, which nearly doubled their hourly earnings and reduced reliance on tips, which now make up about 10 percent of total pay.
DoorDash and Uber filed a joint federal lawsuit last week in the Southern District of New York, arguing that the tipping rules violate the First Amendment by compelling the apps to display a “government-mandated message” and that the City Council exceeded its authority. The companies claim that pre-delivery tip suggestions could discourage customers from using their platforms due to “tipping fatigue,” potentially reducing orders and overall engagement.
Delivery workers, numbering roughly 80,000 in the city, have become a staple of New York life, crisscrossing neighborhoods on bikes, scooters, and cars. Spending on food delivery has surged, exceeding $265 million in the first half of 2025, up from $183 million in the same period of 2022. The city has also enacted some of the strictest regulations in the nation on delivery apps, including rules on fees charged to restaurants and safety standards for e-bikes.
Mayor-elect Zohran Mamdani has criticized the industry for exploiting workers, calling attention to low wages and limited protections. During his campaign, he supported providing customers with a tipping option at checkout. Other new rules going into effect in January include requiring companies to pay workers promptly and provide detailed compensation statements within a week of the pay period, and implementing safety standards for e-bikes following previous battery-related fires.
City Council member Shaun Abreu, who introduced the tipping legislation, said the law is meant to increase transparency for both customers and delivery workers and does not impose extra costs on the apps. Worker advocates argue that limiting tipping options allows companies to suppress pay and maintain reliance on high order volumes. Delivery worker Jose Lino said he has personally seen a significant drop in tip income over the years and expects the law will help boost earnings.
The city’s Department of Consumer and Worker Protection expressed disappointment in the lawsuit, emphasizing that Uber and DoorDash are once again attempting to restrict delivery workers’ rights to fair compensation and customers’ ability to tip as they choose.