NYC Secures $5.2 Million in Restitution for Delivery Workers as Mayor Mamdani Strengthens Gig Economy Protections

### What’s happening

– Mayor Zohran Mamdani announced $5.2 million in restitution for delivery workers on January 30, 2026.
– The Department of Consumer and Worker Protection holds Uber Eats, Fantuan, and HungryPanda accountable.
– The payout will affect over 49,000 delivery workers.

### Why it matters

– Nearly 50,000 delivery workers will benefit from the restitution and reinstatement measures.
– New protections aim to ensure fair wages for workers in a growing gig economy.

### Key details

– Total restitution amount is $5,195,000.
– Uber Eats will pay $3,150,000 to over 48,000 workers.
– Fantuan will pay over $468,000 to 285 workers.
– HungryPanda will pay $1,068,672 to over 1,000 workers.
– Uber will reinstate up to 10,000 workers wrongfully deactivated between December 2023 and September 2024.
– Minimum Pay Rate for delivery workers will increase to $22.13 on April 1, 2026.

Mayor Zohran Mamdani’s administration has secured over $5 million in restitution from major delivery apps to address wage violations impacting delivery workers in New York City. During an announcement on January 30, 2026, Mamdani and Department of Consumer and Worker Protection (DCWP) Commissioner Sam Levine outlined that Uber Eats, Fantuan, and HungryPanda would collectively pay $5,195,000. This amount addresses violations of the city’s Minimum Pay Rate law, affecting over 49,000 workers.

Under the settlement, Uber Eats will pay $3,150,000, covering more than 48,000 workers who were not compensated for canceled trips. Fantuan and HungryPanda are also accountable for their failures to pay minimum rates, contributing over $468,000 and $1,068,672, respectively. These actions highlight a broader enforcement strategy by the DCWP, tapping into innovative monitoring systems to swiftly address compliance issues.

The initiative aims to reverse past losses and instill greater accountability among delivery apps. Additionally, Uber Eats will reinstate as many as 10,000 workers who were wrongfully deactivated between December 2023 and September 2024. Starting April 1, 2026, the Minimum Pay Rate for delivery workers will rise to $22.13, reflecting an inflation adjustment.

These enforcement actions underscore the administration’s commitment to support the city’s 80,000 delivery workers, many of whom are immigrants. Recent measures and ongoing investigations, including a lawsuit against Moto Click, indicate the city’s dedication to ensuring that delivery workers receive fair treatment.

The push for equitable wages extends beyond food delivery workers: new legislation will expand protections to grocery delivery workers as well. Testimony has indicated that grocery delivery employees face similar working conditions and should receive comparable protections. As these laws take effect, the administration will closely monitor compliance and provide education to workers about their rights under these new regulations.

The steps taken by the Mamdani administration reflect a larger shift in New York City’s labor landscape, setting a precedent for the treatment of gig economy workers moving forward.

Source: [NYC Mayor’s Office](https://youtu.be/hPtLfXNxbok)