A federal judge in Manhattan has dismissed a lawsuit by DoorDash and Uber Eats seeking to block New York City’s new tipping law, which goes into effect shortly. The law requires that customers have the option to tip at checkout, with a minimum default of 10%, aimed at providing greater earnings for delivery workers.
The ruling is a boost for the city’s efforts to improve wages and working conditions for these workers, who have faced challenges such as app changes that could reduce tips. Uber and DoorDash argued the law infringes on their free speech rights, but U.S. District Judge George B. Daniels found no merit in their claims.
DoorDash expressed concern that the law could lead to fewer orders for small businesses. City Councilman Sean Abreu, who sponsored the bill, hailed the ruling as a significant win for delivery workers. Local labor rights advocates supported the decision, emphasizing the importance of acknowledging delivery workers’ contributions. Samuel Levin, director of the city’s Department of Consumer and Worker Protection, stated that large corporations must comply with laws protecting workers and consumers.
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