New York delivery workers recoup $104 million in tips thanks to new law

New York City's delivery workers are seeing a significant financial boost, with over $104 million in tips recovered since a new law mandated visible tipping options on digital platforms. Mayor Zohran Mamdani announced the figures, highlighting that the legislation directly addresses years of apps prioritizing their own profits over worker compensation.

"For years, delivery apps hid the tip button to increase their profits, and delivery workers paid the consequences," the mayor stated. "We changed the law, enforced it, and it is working: $104 million has returned to the pockets of the workers who supply this city with food, rain or shine."

The law, which took effect on January 26, 2026, requires platforms like Uber Eats and DoorDash to clearly display tipping options during the checkout process. These include a suggested 10% gratuity, a custom amount, or the choice not to tip.

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During years, the delivery apps hid the tip button to increase their profits, and the delivery workers paid the consequences.

Official data from the Department of Consumer and Worker Protection (DCWP) reveals a near doubling of tips per delivery. Before the reform, the average tip was $1.18; in the four weeks following the law's implementation, this rose to $2.29 per order. If this trend continues, the city projects that around 70,000 delivery workers could receive an additional $184 million annually.

The reform has not negatively impacted demand for delivery services, with platforms still handling approximately 3.3 million orders weekly. The DCWP reports that total hourly earnings, including wages and tips, have surged from $10.48 to $27.32, a 161% increase. Since the introduction of a minimum wage for delivery workers in December 2023, the city estimates they have received over $2 billion in additional income.

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We changed the law, enforced it, and it is working: $104 million has returned to the pockets of the workers who supply this city with food, rain or shine.