Overview
- Effective January 26, delivery apps must display a tipping option at or before checkout with a default suggestion of at least 10%, which customers can adjust.
- U.S. District Judge George B. Daniels denied a bid to block the rule, and companies including Uber, DoorDash, Grubhub, and Instacart have appealed, arguing First Amendment violations and warning of tipping fatigue.
- City regulators say moving tip prompts to after delivery led to a sharp decline in gratuities, estimating roughly $550 million in lost tips for workers.
- Newly finalized rules expand protections by covering grocery delivery, requiring pay for all time worked including waiting, mandating detailed recordkeeping, and issuing updated notices of rights in apps, emails, and texts.
- Delivery workers are guaranteed a minimum of $21.44 per hour under city rules, with the floor scheduled to rise to $22.13 on April 1.