New York City said it's suing food-delivery technology provider Motoclick for withholding pay from workers, signaling Mayor Zohran Mamdani's get-tough approach to regulating app-based work.

New York

New York City officials have initiated legal action against the food-delivery technology company Motoclick, accusing it of illegally withholding wages from couriers and violating local minimum wage laws. The city alleges that Motoclick deducted costs of canceled or refunded orders from workers' paychecks, sometimes leaving them in debt.

The mayor's office clarified that the intent is not to be adversarial toward businesses but to ensure compliance with new regulations for app-based workers, which will soon take effect. While Lyft is not implicated in the lawsuit, Uber and DoorDash are tangentially involved through their use of similar platforms. The mayor has also enlisted former FTC officials to prioritize worker protection as part of his administration's affordability agenda.

Mamdani cracks down on food-delivery tech Motoclick

Tell us specifically on the action that this mayor's office has now taken. Yeah, specifically on this company Motoclick, the mayor's office alleges that there were wages illegally withheld from some couriers and sometimes it left them owing money to the platform instead of getting paid. What we know is that city officials filed suit against Motoclick, accusing the company of violating local delivery worker laws by failing to pay the city's required minimum wage. The city also says that Motoclick deducted the cost of canceled or refunded orders directly from workers' paychecks. In some cases, officials say those deductions were pushed to workers into debt. And one thing that's really important to note here is that the mayor said just a few moments ago that he does not want business to think that they're being onerous or going directly after business. No, the city rather is trying to get business to work with them and to follow regulations. All of these app companies are subject to new rules that will go into effect at the end of the month. And they specify wages that workers who are in these low cost jobs will need to be paid. And they want to put them on notice to get in compliance before you have a situation like this with Motoclick and filing a lawsuit against them and trying to get the company shut down. And we should be clear, by the way, that while we're keeping an eye on Lyft and Uber, Lyft is higher, the shares are at least, because they're not part of the lawsuit. And Uber uses the platforms that we're talking about here with when it comes to Motoclick. DoorDash also, you know, tangentially involved. Miles, very quickly, how does this fit in with what the mayor has said would be his priority as he assumed office? Yeah, you know, the mayor is saying he doesn't want an adversarial relationship with the business community because the city can't tell its story without using the business community. But it fits in nicely. He's got Lena Khan, the former head of the FTC, working with him in a unpaid role. He's got Julie Hsu as a deputy mayor here working on economic development. And then he's got Sam Levine, a former head of enforcement at the FTC here. It's very clear that worker protection is going to be the pinnacle of his affordability agenda.

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