NYC Mayor Mamdani Expands Delivery-App Enforcement with New Lost-Pay Lawsuit

New York City has initiated a lawsuit against a food-delivery technology provider, Motoclick, for allegedly withholding wages from workers. This move reflects Mayor Zohran Mamdani’s firm stance on regulating app-based labor practices.

According to the city, Motoclick has violated delivery worker laws by failing to pay the mandated minimum wage and by deducting amounts from workers’ paychecks for canceled and refunded orders. These practices reportedly left some couriers in debt to the company, which collaborates with platforms like Uber Eats, DoorDash, and Grubhub.

“Motoclick and its CEO deceived New Yorkers into working for their platform with false promises, then stole their tips and earnings, sometimes even driving workers into debt,” stated Samuel A.A. Levine, the city’s consumer and worker protection commissioner. He emphasized that other delivery apps should take heed of this situation.

The lawsuit, filed in New York State Supreme Court against Motoclick and its CEO, Juan Pablo Salinas Salek, is part of a broader initiative to ensure compliance within New York’s rapidly growing app-based delivery sector. City officials claim that Motoclick and Salinas Salek owe workers millions in unpaid wages and damages.

As of now, Motoclick and its legal representatives have not responded to requests for comment.

Levine noted that his agency has also issued warnings to major food-delivery platforms, including Uber Eats, DoorDash, Grubhub, and Instacart, urging them to comply with new worker protections set to take effect later this month. These protections encompass regulations on tipping, pay transparency, minimum pay eligibility, and timely weekly payments.

Earlier this week, the city accused DoorDash and Uber Eats of depriving delivery workers of over $550 million in tips due to changes in their app interfaces. DoorDash has labeled the report as “flat-out wrong.”

City officials are seeking to shut down Motoclick entirely, a drastic measure that underscores the administration’s commitment to stricter enforcement of labor laws.

“City Hall does not wish to have an adversarial relationship with any business operating in our city,” Mamdani stated to reporters. “However, for those who believe they can profit while stealing from their workers and violating the law, let it be clear: We will support those workers every single time.”

Mamdani announced the lawsuit alongside Levine and Julie Su, the deputy mayor for labor and workforce development, as well as labor advocates. Su previously served as acting U.S. labor secretary during the Biden administration, while Levine led enforcement at the Federal Trade Commission.

Their appointments reflect a broader governing philosophy that Mamdani has adopted since taking office, influenced in part by Lina Khan, the former chair of the FTC. Khan has argued that cities often have untapped legal authority that can be utilized to regulate powerful companies, particularly in sectors where technology and pricing systems dictate workers’ pay.

Khan has emphasized that food delivery companies deserve scrutiny not only for wage levels but also for the design of the systems that manage how work is assigned, tracked, and compensated. This perspective has guided city officials in their aggressive approach against Motoclick.

The case is City of New York v Patio Delivery Inc., New York State Supreme Court, New York County.

Copyright 2026 Bloomberg.

Topics
Lawsuits

New York City has initiated a lawsuit against a food-delivery technology provider, Motoclick, for allegedly withholding wages from workers. This move reflects Mayor Zohran Mamdani’s firm stance on regulating app-based labor practices.

According to the city, Motoclick has violated delivery worker laws by failing to pay the mandated minimum wage and by deducting amounts from workers’ paychecks for canceled and refunded orders. These practices reportedly left some couriers in debt to the company, which collaborates with platforms like Uber Eats, DoorDash, and Grubhub.

“Motoclick and its CEO deceived New Yorkers into working for their platform with false promises, then stole their tips and earnings, sometimes even driving workers into debt,” stated Samuel A.A. Levine, the city’s consumer and worker protection commissioner. He emphasized that other delivery apps should take heed of this situation.

The lawsuit, filed in New York State Supreme Court against Motoclick and its CEO, Juan Pablo Salinas Salek, is part of a broader initiative to ensure compliance within New York’s rapidly growing app-based delivery sector. City officials claim that Motoclick and Salinas Salek owe workers millions in unpaid wages and damages.

As of now, Motoclick and its legal representatives have not responded to requests for comment.

Levine noted that his agency has also issued warnings to major food-delivery platforms, including Uber Eats, DoorDash, Grubhub, and Instacart, urging them to comply with new worker protections set to take effect later this month. These protections encompass regulations on tipping, pay transparency, minimum pay eligibility, and timely weekly payments.

Earlier this week, the city accused DoorDash and Uber Eats of depriving delivery workers of over $550 million in tips due to changes in their app interfaces. DoorDash has labeled the report as “flat-out wrong.”

City officials are seeking to shut down Motoclick entirely, a drastic measure that underscores the administration’s commitment to stricter enforcement of labor laws.

“City Hall does not wish to have an adversarial relationship with any business operating in our city,” Mamdani stated to reporters. “However, for those who believe they can profit while stealing from their workers and violating the law, let it be clear: We will support those workers every single time.”

Mamdani announced the lawsuit alongside Levine and Julie Su, the deputy mayor for labor and workforce development, as well as labor advocates. Su previously served as acting U.S. labor secretary during the Biden administration, while Levine led enforcement at the Federal Trade Commission.

Their appointments reflect a broader governing philosophy that Mamdani has adopted since taking office, influenced in part by Lina Khan, the former chair of the FTC. Khan has argued that cities often have untapped legal authority that can be utilized to regulate powerful companies, particularly in sectors where technology and pricing systems dictate workers’ pay.

Khan has emphasized that food delivery companies deserve scrutiny not only for wage levels but also for the design of the systems that manage how work is assigned, tracked, and compensated. This perspective has guided city officials in their aggressive approach against Motoclick.

The case is City of New York v Patio Delivery Inc., New York State Supreme Court, New York County.

Copyright 2026 Bloomberg.

Topics
Lawsuits