New York City, January 16, 2026
New York City has filed a lawsuit against the food delivery app Motoclick, claiming violations of Delivery Worker Laws, including minimum wage failures and unlawful paycheck deductions. The city seeks to shut down the company, which has allegedly taken millions from workers. The lawsuit highlights broader enforcement actions against app-based companies to protect delivery workers and ensure compliance with labor laws.
New York City Sues Delivery App Motoclick Over Alleged Worker Exploitation
City Takes Action Against Alleged Minimum Wage Violations
New York City is taking a stand against alleged worker exploitation by filing a lawsuit against the food delivery app Motoclick and its CEO, Juan Pablo Salinas Salek. The city claims that the company has committed significant violations of the Delivery Worker Laws, notably failing to pay the mandated minimum wage and making unlawful deductions from workers’ paychecks. Motoclick is accused of charging workers a $10 fee for canceled orders and deducting the full costs of refunded orders, resulting in millions of dollars in stolen pay and damages owed to delivery workers. The city is seeking to shut down Motoclick entirely.
Details of the Allegations
The lawsuit, filed by the Department of Consumer and Worker Protection (DCWP) in the New York State Supreme Court, outlines several unlawful practices:
- Minimum Wage Violations: Allegations include Motoclick’s failure to pay the required minimum wage, violating fundamental labor laws.
- Unlawful Deductions: Motoclick is accused of making unlawful deductions, including charging a $10 fee for canceled orders and deducting the costs of refunded orders, fostering financial stress among delivery workers.
- Retaliation Against Workers: The lawsuit also points to instances of retaliation against workers who raised concerns about these practices; reports indicate that some workers were blocked from logging into the app or had their accounts deactivated.
City’s Response and Broader Enforcement Actions
Mayor Zohran Mamdani, alongside Deputy Mayor for Economic Justice Julie Su and DCWP Commissioner Sam Levine, has framed the lawsuit as part of a broader initiative to hold app-based companies accountable in New York City. They have launched a compliance blitz, notifying other delivery platforms such as Instacart, DoorDash, Grubhub, and Uber about upcoming Delivery Worker Laws effective January 26. The new laws include:
- Local Laws 107 and 108: Aimed at protecting tips for delivery workers.
- Local Law 113: Focused on improving pay transparency among delivery workers.
- Local Laws 123 and 124: Expanding minimum pay rates, ensuring timely weekly payments, and enhancing access to bathrooms for delivery personnel.
Background on Motoclick
Motoclick, which operates a restaurant-facing delivery service from its base in Bolivia, integrates with popular platforms like Uber Eats, DoorDash, and Grubhub. The company has faced scrutiny due to allegations of exploitative business practices, particularly targeting immigrant workers through tactics like withholding tips and imposing illegal fees. In 2024 alone, more than 20 complaints were lodged against Motoclick regarding its treatment of workers, prompting this legal action.
Implications for the Delivery Industry
This lawsuit represents a crucial step for the Mamdani administration in its push against perceived predatory practices by app-based delivery companies. By enforcing existing labor laws, the city aims to protect delivery workers from exploitation while ensuring that businesses comply with regulations. The outcome of this case may set a precedent for future actions against other companies in the delivery industry and could impact the broader business climate for gig-economy workers.
Conclusion
New York City’s legal action against Motoclick highlights the ongoing effort to ensure fair labor practices in the gig economy. By prioritizing accountability and transparency, local leaders seek to foster a more equitable environment for delivery workers. As the landscape of the delivery industry evolves, supporting local businesses and staying engaged with city initiatives will be vital for securing a positive future for all stakeholders involved.
Frequently Asked Questions (FAQ)
What is the Mamdani administration suing Motoclick for?
The Mamdani administration is suing Motoclick for egregiously violating New York City’s Delivery Worker Laws, including failing to pay the required minimum wage and unlawfully deducting fees from workers’ paychecks.
What specific unlawful practices are Motoclick accused of?
Motoclick is accused of charging workers a $10 fee for canceled orders, deducting the full cost of refunded orders from workers’ pay, and retaliating against workers who complained by blocking them from logging into the app or deactivating their accounts entirely.
What actions is the city taking against other delivery platforms?
The city has launched a compliance blitz, sending notices to other delivery platforms such as Instacart, DoorDash, Grubhub, and Uber, warning them to adhere to new Delivery Worker Laws taking effect on January 26. These laws include tipping protections, pay transparency, and expanded minimum pay rates for delivery workers.
What is the background of Motoclick?
Motoclick is a Bolivia-based company that operates a restaurant-facing delivery service, integrating with platforms like Uber Eats, DoorDash, and Grubhub. The company has been accused of deceptive business practices targeting immigrant workers, including withholding tips, charging illegal fees, and violating minimum wage laws.
What are the implications of this lawsuit for the delivery industry?
This lawsuit marks a significant step in the Mamdani administration’s crackdown on predatory practices by app-based delivery companies. The city’s aggressive enforcement aims to protect delivery workers from exploitation and ensure that companies operating in New York City comply with labor laws. The outcome of this case could set a precedent for future legal actions against similar companies and influence the broader delivery industry.
Key Features of the Motoclick Lawsuit
| Feature | Description |
|---|---|
| Minimum Wage Violations | Failure to pay mandated minimum wage as per New York City labor laws. |
| Unlawful Deductions | Charging workers $10 for canceled orders and deducting costs of refunded orders. |
| Worker Retaliation | Blocking access or deactivating accounts of workers who raised complaints. |
| City Enforcement | Legal action against Motoclick and compliance blitz launched for other delivery platforms. |
| Industry Implications | Potential to set a precedent for future actions against similar predatory practices. |
Now Happening on X
- @helloDCWP (January 15, 2026): Motoclick and its CEO tricked New Yorkers into working for their platform with false promises and then stole their tips and earnings; the DCWP is fighting back and warning other predatory delivery apps to comply. View on X
- @NY1 (January 16, 2026): Mayor Mamdani announced the city has filed a lawsuit against delivery app Motoclick and its CEO, alleging the company stole directly from workers’ paychecks. View on X
- @MorePerfectUS (January 15, 2026): New York City is suing food-delivery app Motoclick for withholding pay from workers, including failing to pay the required minimum rate and deducting canceled/refunded orders from paychecks. View on X
- @DouglasLFarrar (January 15, 2026): DCWP Commissioner Levine filed a lawsuit against NYC delivery app MotoClick for stealing earnings from deliveristas, charging $10 for canceled orders, and ignoring minimum pay rules, affecting thousands of workers. View on X
- @BloombergTV (January 15, 2026): New York City is suing food-delivery technology provider Motoclick for withholding pay from workers, highlighting Mayor Mamdani’s get-tough approach to regulating app-based work. View on X
- @NYCMayorsOffice (January 15, 2026): The city filed a case to recover owed money for delivery workers from Motoclick, which stole tips and ignored minimum pay laws; under the current administration, such practices won’t be tolerated. View on X
- @News12BX (January 15, 2026): NYC filed a lawsuit against delivery app Motoclick and its CEO for violating the city’s delivery worker laws, as part of efforts to hold platforms accountable for protecting workers’ rights. View on X
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