Business organizations are urging the City Council to reject a controversial labor bill that has gained support from Mayor Zohran Mamdani and his progressive allies. They contend that the proposed legislation would impose severe requirements on essential job providers.
A coalition, which includes the Taxpayers Protection Alliance and the American Consumer Institute, sent a letter to the Democratic-led council and Speaker Julie Menin on Tuesday. They warned that the Delivery Protection Act could result in “substantial costs” for companies like Amazon and UPS, ultimately affecting consumers as well.
“These requirements would impose substantial costs on businesses while doing little to address the underlying safety concerns the legislation purports to solve,” the letter outlined.
The bill, introduced by Council Member Tiffany Cabán and supported by Mamdani along with other progressives, aims to refine safety training and operations for delivery services, banning the use of third-party contractors or gig workers in the fulfillment process.
Non-compliance could lead to hefty fines, with businesses facing a $500,000 penalty for each non-employee worker reported to the city Department of Consumer and Worker Protection.
“By placing significant new obligations on facilities that use contracted workers and imposing a $500,000 bond for every non-employee delivery worker, the legislation creates a powerful incentive for businesses to abandon independent contracting altogether,” the coalition remarked.
In fact, Amazon has already signaled intentions to shut down several warehouses and relocate thousands of jobs from New York City in response to the bill.
The opposing business groups referenced an op-ed in the Washington Examiner, noting that 38% of American workers earn income through temporary jobs. They expressed concerns that the proposed policy could cost residents approximately $664 annually due to increased expenses passed on by companies.
Furthermore, the coalition indicated that small businesses might suffer disproportionately because they find it more challenging to adapt to significant administrative changes.
Others have pointed out that the proposed rules could decrease competition among larger corporations and contractors unable to meet the new standards.
“Ironically, legislation intended to hold large corporations accountable could therefore make the market more concentrated by pushing independent operators out of it,” they stated.
However, the bill enjoys significant support, with 35 co-sponsors, which gives it a veto-proof majority if voted on by the council. It also has the backing of delivery-worker unions like the International Brotherhood of Teamsters and the Workers Justice Project.
Currently, the bill is on hold in committee, awaiting a vote before being presented to the entire council. There has been no scheduling for a committee vote as of yet, according to the council’s website.
