(NewsNation) — New York City lawmakers are considering legislation that would require companies such as Amazon to directly employ last-mile delivery workers, effectively barring the use of third-party contractors.

The bill, known as the Delivery Protection Act, would require operators of last-mile facilities — where packages are sorted and loaded for final delivery — to obtain a city license and meet new safety, training and employment standards.

Supporters say it would improve worker safety and corporate accountability, while critics warn it would hurt small businesses and lead to job losses, drawing sharp debate at a New York City Council hearing Thursday.

At the center of the discussion is Amazon’s Delivery Service Partner model, a network of third-party logistics companies that handle a large share of its package deliveries. Those companies contract with Amazon and employ the workers, rather than the retailer hiring them directly.

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If the measure passes, last-mile facility operators would need to directly employ their core delivery and warehouse workers and would be prohibited from contracting with a third party.

The Teamsters union, which supports the bill, accused Amazon of using DSPs to “control workers” and “avoid legal responsibility for last-mile operations.”

“The Delivery Protection Act is the only way to hold Amazon accountable in New York City,” Randy Korgan, director of the Teamsters Amazon division, said in a statement Thursday.

The union pointed to a 2025 report from the New York City Comptroller’s office that found injury rates at last-mile facilities were more than triple the national average for all private employers.

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Critics say the measure would have significant consequences for workers and small logistics companies.

“At the end of the day, this direct-hire mandate puts a whole subsector of our economy out of business,” Randy Peers, president of the Brooklyn Chamber of Commerce, said at Thursday’s hearing. “The reality here is people are going to lose their jobs.”

Amazon opposed the legislation in written testimony and said it would threaten more than 40 local small businesses it partners with for deliveries, along with more than 5,000 workers those companies employ.

The e-commerce company said it would also be forced to consider relocating delivery operations outside of New York City.

The bill has 32 council member sponsors, a majority of the 51-member body.

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