Uber Eats to Pay $3.5M over NYC Delivery Worker Pay Violations

Uber Eats will pay $3.5 million to resolve NYC charges it violated minimum pay rules for delivery workers, including $3.15M in restitution.

The New York City Department of Consumer and Worker Protection (DCWP) has ordered Uber Eats to pay $3.5 million to resolve charges that it violated the city's groundbreaking minimum pay rules for delivery workers. The settlement includes $3.15 million in restitution to be distributed to affected delivery workers and $350,000 in civil penalties paid to the city. This enforcement action is the first major settlement under New York City's "Pay Up" law, which established a minimum per-trip payment for app-based delivery workers.

The DCWP's investigation found that Uber Eats failed to properly calculate and pay the mandated minimum rate, which is currently $17.96 per hour before tips when workers are actively engaged on a delivery. The violations pertained to the company's method of accounting for worker time and expenses, resulting in underpayments to a significant portion of its delivery workforce in the city over a sustained period. The settlement mandates the company to correct its pay algorithms and provide detailed compliance reports.

“This settlement delivers owed wages directly into the pockets of hardworking delivery workers and makes clear that companies must follow our laws,” said the DCWP Commissioner. An attorney for worker advocates stated, “This is a critical win for accountability. It signals that platforms cannot skirt these vital wage protections with impunity.”

The ruling is a major test of local governments' ability to regulate and enforce labor standards in the gig economy. New York City's delivery worker pay law is among the most comprehensive in the nation, and this settlement establishes a precedent for enforcement that other cities and states are likely to observe. It directly impacts the operational costs and compliance models for all major food delivery platforms operating in the city.

Uber Eats has agreed to the terms and will begin the process of identifying and compensating affected workers. The DCWP will monitor the restitution process and the company's ongoing payroll compliance, with further audits possible to ensure adherence to the law.