New York City's enforcement of a strengthened tipping law has directed more than $104 million in customer tips to delivery workers since late January. Early results show average tips rising to $2.29 per delivery and base pay averaging $1.18 per delivery. Officials say the law and the city's minimum pay standard have helped push average hourly earnings from $10.48 to $27.32 and could add about $184 million in tips annually—roughly $2,287 per worker.
NYC Delivery Workers Net $104M in Tips Since New Tipping Law Took Effect; $184M Projected Annually
Delivery drivers and couriers across New York City have collected more than $104 million in customer tips since the end of January, Mayor Zohran Mamdani announced. The city’s Department of Consumer and Worker Protection (DCWP) began enforcing new tipping protections after working with the New York City Council for three years to pass legislation strengthening rights for contracted grocery and food delivery workers.
Law, Enforcement and Purpose
The ordinance targets app design practices that made tipping less visible to consumers. City officials say enforcement makes it easier for customers to add tips and prevents companies from embedding or hiding tip options in ways that reduced earnings for delivery workers.
“For years, delivery apps buried the tip button to pad their own bottom line, and delivery workers paid the price,” Mayor Mamdani said in a news release. “We changed the law, enforced it, and it's working: $104 million has gone back into the pockets of the workers who keep this city fed, rain or shine. New York will not allow billion‑dollar tech companies to boost their profits by taking money from working people.”
Early Impact
Four weeks after enforcement began, the city reported measurable gains: the average tip rose to $2.29 per delivery, while average base pay and other compensation amounted to about $1.18 per delivery. DCWP Commissioner Samuel A. A. Levine said the clearer tipping options benefit both workers and the broader local economy.
The city also reported a separate rise in average total hourly earnings for delivery workers, which increased from $10.48 per hour in December 2023 to $27.32 per hour. Officials say the city’s minimum pay standard for delivery services has contributed more than $2 billion in additional earnings overall for delivery workers.
Projected Gains
Mayor Mamdani estimated the new law will contribute roughly $184 million in additional tips each year, which equates to about $2,287 more annually for the average delivery worker if projections hold.
What This Means: Early data suggest that clearer tipping interfaces and a city-enforced minimum pay standard can significantly increase workers’ take-home pay, while limiting the ability of platforms to divert tips away from their intended recipients.
Reporting note: This article consolidates the city's announcements and statistics released by the DCWP and statements from Mayor Mamdani and DCWP Commissioner Samuel A. A. Levine.
Help us improve.
