Home / Business and Economy / NYC Cracks Down on Gig App Deactivations
NYC Cracks Down on Gig App Deactivations
3 Feb
Summary
- Up to 10,000 Uber Eats accounts to be reinstated.
- Three gig apps to pay $5.2 million for pay law violations.
- Settlement addresses unfair account deactivations and pay issues.
New York City has taken decisive action regarding gig worker account deactivations, a significant concern for delivery professionals. The city's Department of Consumer and Worker Protection announced a settlement where Uber Eats will reinstate as many as 10,000 accounts that were deactivated between December 2023 and September 2024.
This reactivation is linked to a broader $5.2 million settlement involving Uber Eats, Fantuan, and HungryPanda for violating New York City's minimum pay law for delivery workers. The settlement also mandates payouts to approximately 49,000 delivery workers in the city as damages, compensating them for instances where they were not paid or had accounts deactivated due to customer order cancellations.
Affected workers are expected to have their accounts automatically reinstated. The city's action follows similar regulatory efforts, such as Seattle's law requiring advance notice and human review for deactivations. This initiative also marks a series of recent actions by New York City to support gig workers, including warnings over pay practices and enforcement of laws aimed at increasing tip earnings.
