New York City Seeks Ban on Motoclick Over Alleged Wage Theft

New York Mayor Zohran Mamdani wants to ban the food delivery platform Motoclick after it reportedly admitted to paying workers less than a quarter of New York City’s required delivery worker minimum wage, city officials told a federal judge this week. New York Commissioner Samuel Levine, the New York City Department of Consumer and Worker Protection (DCWP), Corporation Counsel Steve Banks, and the New York City Law Department filed a motion seeking a preliminary injunction to stop Patio Delivery Inc and its agents from operating in New York City unless they come into compliance with the City’s Delivery Worker Laws by paying workers the $22.13 per hour they are owed under the minimum pay rate. In a release, NYC government claimed that this is the first time DCWP has sought a preliminary injunction to protect delivery workers. The City’s lawsuit filed against Motoclick in January alleging egregious violations of the Delivery Worker Laws seeks millions in missing pay and damages. The filing alleges that Motoclick produced reports to DCWP showing that it paid workers between $3.67 and $4.67 per hour in the month of May, a fraction of the lawful minimum pay rate. This new enforcement action seeks to bar the company from operating in New York City unless it begins paying workers a lawful rate. “Paying New York delivery workers poverty wages is not only wrong—it's illegal,” said Commissioner Samuel A.A. Levine. “DCWP is asking the Court to shut Motoclick down unless and until it comes into compliance. New York will not allow this company to continue underpaying New Yorkers.” “Paying hardworking delivery workers as little as three to four dollars an hour is not only morally wrong, it’s illegal,” said New York City Corporation Counsel Steve Banks. “As our legal action makes clear, the City of New York will not tolerate companies that abuse their workers and violate our local laws.” “Delivery workers fought for years to win New York City’s minimum pay protections, and those rights only have meaning when they are enforced,” said Ligia Guallpa, Executive Director of Worker’s Justice Project and Co-Founder of its Los Deliveristas Unidos. “We are grateful to Commissioner Levine, the Department of Consumer and Worker Protection, and the City Law Department for taking decisive action to hold Motoclick accountable for some of the most brazen alleged wage theft we have seen in this industry. No worker should be earning three or four dollars an hour while delivery companies profit from their labor. This action sends a clear message that companies cannot evade the law, undercut responsible businesses, or exploit workers with impunity. It also shows why New York is leading the nation in ensuring that every delivery worker receives the pay they have earned and deserve.”

What is the NYC vs Motoclick case all about

In January, the City filed a case in court against Motoclick, alleging that the company has been egregiously violating the city’s Delivery Worker Laws by paying workers below the legal minimum pay rate and deducting fees from workers’ pay. DCWP estimates that Motoclick and its CEO Juan Pablo Salinas Salek owe workers millions in back pay. The case is in the United States District Court for the Southern District of New York, City of New York v. Patio Delivery Inc., No. 26-CV-01287. Third-party food and grocery delivery apps are required to submit monthly data reports so that DCWP can monitor compliance with the Minimum Pay Rule. In May, Motoclick, which operates a food delivery app, provided reports to DCWP that show violations of the law. For example, Motoclick’s May 2026 report shows illegally low pay of $4.67 per hour, or even less, while its April report shows that workers were underpaid by $172,010.67 in a single week. The City's pioneering Minimum Pay Rate rule, established by Local Law 115 of 2021, dramatically increased average hourly earnings for app-based delivery workers without reducing deliveries. In April, the MPR increased to $22.13, reflecting a 3.2% adjustment for inflation. DCWP urges all workers who believe their rights have been violated to file a complaint by visiting nyc. gov/workers. Since the start of the Mamdani administration, DCWP has secured more than $9.3 million in restitution for New York City consumers, workers, and small businesses, including nearly $5 million for Uber Eats, Fantuan and HungryPanda delivery workers. DCWP's lead attorneys on the case are Supervising Enforcement Counsel John De Vito, Staff Counsel Gabriel Gutierrez, and Staff Counsel Christopher Taylor of DCWP's Office of Labor Policy & Standards, under the supervision of Litigation Director Emily Hoffman and Deputy Commissioner Elizabeth Wagoner.