![\"Food](\"https:\/\/www.newsbeep.com\/us-ny\/wp-content\/uploads\/2025\/12\/GettyImages-1856636909.jpg\" "\\"Uber,")
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Uber and DoorDash sue NYC over its Tipping Law, set to take effect next month.<\/p>\n
Photo via Getty Images<\/p>\n
Uber and DoorDash are suing<\/a> New York City over its Tipping Law<\/a>, which requires them to offer customers the option to tip at least 10% at checkout \u2014 not after an order is paid \u2014 claiming that the law exacerbates the city\u2019s affordability crisis and violates the companies\u2019 right to free speech.\u00a0\u00a0<\/p>\n \u201cThe city compels [Uber and Doordash] to advocate for and implicitly endorse the city\u2019s preferred message \u2014 i.e., that New York City customers should tip delivery workers, that they should do so before those workers complete the delivery, and that 10% is an appropriate amount,\u201d the companies allege in a complaint filed in the U.S. District Court for the Southern District of New York. \u201cThe Tipping Law unlawfully compels [them] to convey and endorse a message in New York City that they do not communicate now and would not otherwise communicate.\u201d<\/p>\n The Tipping Law was passed in July and takes effect next month. Council Member Shaun Abreu, who sponsored the legislation, said the suit amounts to retaliation against workers.\u00a0<\/p>\n \u201cOur goal is to protect workers who perform a difficult, valuable service. We won\u2019t stand by while the apps retaliate against workers who organized for a minimum wage,\u201d Abreu said in a statement. \u201cOver 80,000 delivery workers at the core of our food delivery ecosystem take on dangerous conditions using their own personal equipment to bring meals to our doors. If a customer wants to reward that work with a tip, the apps shouldn\u2019t make it harder for them to do so.\u201d<\/p>\n A DoorDash spokesperson accused the City Council of \u201cpressuring customers\u201d to tip and \u201cturning tipping into an added tax,\u201d and said the lawsuit was about \u201cfighting rising costs and ensuring delivery remains fast and affordable for all New Yorkers.\u201d<\/p>\n A spokesperson for Uber did not immediately respond when asked for comment.\u00a0\n<\/p>\n The companies argue that the law\u201cconstitutes a regulatory taking\u201d of their property rights by controlling how they communicate with customers and that, because they\u2019ve increased delivery fees after laws raising the minimum wage for their workers to $21.44\/hour passed, prompting customers to tip before a delivery will \u201cmaterially impair [their] goodwill, customer demand, business opportunities, and revenue,\u201d because of\u00a0 increased costs to using their platforms and \u201cgrowing customer tip fatigue.\u201d<\/p>\n The city\u2019s Law Department, which reviews lawsuits against the city, said it is reviewing the suit.\u00a0\n<\/p>\n The city\u2019s Department of Consumer and Worker Protection called the suit disappointing, accusing the companies of wanting to hide the option to tip, take away consumer choice and punish workers.\u00a0<\/p>\n \u201cWe are disappointed that, once again, Uber and DoorDash are attempting to limit app-based delivery workers\u2019 right to fair and dignified compensation \u2014 now, by seeking to restrict consumers\u2019 ability and choice to decide how and when to tip,\u201d the department said in a statement. \u201cTipping has always been voluntary, but hiding the option in the app or adding hurdles to the process takes that choice away from consumers and punishes workers by lowering their overall potential earnings.\u201d<\/p>\n Their suit is one of the latest clashes between tech platforms and the New York City government over regulations aimed at increasing worker and consumer protections. Earlier this month,\u00a0 Instacart filed a suit to challenge Local Law 124, which increases the minimum wage for grocery delivery workers to $21.44\/hour and requires the company to pay workers for time they spend \u201con call,\u201d not just time they physically spend delivering groceries. Uber and DoorDash have also sued the city repeatedly in recent years over minimum wage increases.<\/p>\n Additionally, in October of this year, the city sued a slew of big tech companies, including Meta, Google, Snap and ByteDance, arguing that their platforms \u2014 Instagram, Facebook, Snapchat, YouTube and TikTok \u2014\u00a0 are fueling a youth mental health crisis. It argues that in \u201cdeliberately\u201d trying to maximize youth engagement, it caused young people to become addicted to the platforms and are therefore liable to pay for counseling and other resources in schools to address the issues they\u2019ve caused. The suit is currently in the pre-trial phase.<\/p>\n","protected":false},"excerpt":{"rendered":"Uber and DoorDash sue NYC over its Tipping Law, set to take effect next month. 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