NYC Delivery App Tipping Law Takes Effect After Court Denies Injunction

New Tipping Mandate Implemented

New York City's new delivery-app tipping law officially went into effect on Monday, January 26, 2026, marking a significant change for both customers and delivery workers across the five boroughs. The legislation mandates that delivery applications must now prompt customers to include a tip at or before the checkout process. This prompt must include a suggested tip of at least 10% of the purchase price or offer a custom amount option.

This new requirement reverses a practice adopted by several major delivery apps in 2023, which had shifted tip prompts to appear only after an order was placed or delivered.

Injunction Request Denied by Federal Court

The implementation of the law proceeded after U.S. District Judge George Daniels denied a request for a preliminary injunction on Friday, January 23, 2026. The lawsuit, filed by prominent delivery platforms Uber Eats and DoorDash, contended that the law's requirement to solicit tips at checkout violated their First Amendment rights by compelling speech. Instacart also had a similar injunction request denied regarding grocery delivery worker laws.

Judge Daniels ruled that the companies had not sufficiently demonstrated a likelihood of success on the merits, irreparable harm, or that the public interest favored an injunction, allowing the city's law to move forward. App companies, including DoorDash, expressed disappointment, warning that the law could lead to 'an immediate drop off in orders' and negatively impact local businesses.

Rationale Behind the Legislation

The City of New York, through the Department of Consumer and Worker Protection (DCWP), championed the law as a measure to ensure 'tipping fairness' and boost workers' earnings. A DCWP report indicated that the previous app design changes, which delayed tip prompts, made it more difficult for customers to tip and resulted in an estimated loss of over $550 million in worker compensation.

City officials, including Mayor Zohran Kwame Mamdani and DCWP Commissioner Samuel Levine, have emphasized the administration's 'zero tolerance for corporate abuse' and commitment to an economy that supports working New Yorkers.

Part of Broader Worker Protections

This tipping law is one component of a broader set of worker protection measures enacted in New York City for delivery workers. These include a minimum pay rate, which currently stands at $21.44 per hour (excluding tips) and is set to increase to $22.13 per hour on April 1, 2026. Other protections ensure:

• Timely payments, no later than seven calendar days after a pay period.
• Detailed, itemized written statements with compensation calculations.
• The right to use business bathrooms when picking up orders.

These comprehensive laws aim to provide greater transparency, fair compensation, and improved working conditions for the city's estimated 80,000 delivery workers.