NYC Delivery Workers Gain $104 Million Under New Tip Law

City officials say tougher app rules nearly doubled average tips without reducing customer demand.

NYC delivery workers have received an estimated $104 million in additional tips since January after the city began enforcing new checkout rules for food-delivery apps, according to a report released Wednesday by Mayor Zohran Mamdani’s administration.

The rules require restaurant delivery apps to give customers a clear opportunity to tip before or during checkout. City officials said the change reversed app designs that made tipping more difficult and sharply reduced worker earnings.

The New York City Department of Consumer and Worker Protection, or DCWP, estimated that the approximately 70,000 app-based restaurant delivery workers operating in the city are now on pace to earn an additional $184 million in tips each year.

That would equal an average annual increase of about $2,287 per worker, based on the city’s analysis. 

What Changed for NYC Delivery Workers?

The new tipping protections took effect Jan. 26, 2026.

Restaurant delivery apps operating in New York City must now give customers several clear choices during the checkout process:

• A selectable tip of at least 10%

• An option to enter a custom tip

• An option to leave no tip

Tipping remains voluntary. The law does not require customers to pay a gratuity. Instead, it requires apps to make the tipping decision visible and accessible before the order is completed.

The rules apply to restaurant delivery platforms such as Uber Eats, DoorDash and Grubhub. 

Average Tips Nearly Doubled

DCWP compared tips during the four weeks before the law took effect with tips during the four weeks afterward.

The department reported that average tips increased from $1.18 per delivery to $2.29 per delivery. That was an increase of $1.11 per trip.

The city’s report described the jump as evidence that app design can strongly influence whether customers leave tips.

“For years, delivery apps buried the tip button to pad their own bottom line, and delivery workers paid the price,” Mamdani said. “We changed the law, enforced it, and it’s working.”

The mayor said the additional $104 million had returned money to workers who deliver meals in difficult weather and demanding street conditions. 

Delivery Demand Remained Strong

One concern surrounding stronger worker protections is that added costs or changes to an app could discourage customers from ordering.

The city said its data did not show that result.

Customers continued placing about 3.3 million delivery orders each week, according to DCWP. That was approximately 700,000 more weekly orders than in December 2023, when the city began enforcing its minimum-pay standard for restaurant delivery workers.

DCWP said the required tipping options had “no discernible impact” on demand during the period studied. 

The finding is important because delivery companies and policymakers often debate whether stronger labor rules will reduce business activity, raise prices or limit flexible work.

The city’s figures suggest that customers continued using delivery services at record levels even as worker earnings increased. However, the report was produced by the agency responsible for enforcing the rules. Longer-term independent research would provide a broader picture of how the regulations affect prices, restaurants, customers and app companies.

Worker Earnings Have Increased Since 2023

The tipping law is one part of a larger set of New York City protections for app-based delivery workers.

DCWP reported that total hourly earnings, including base pay and tips, increased from $10.48 per hour in December 2023 to $27.32 per hour in 2026.

That represents an increase of $16.84 per hour, or 161%, according to the city.

Officials also said the minimum-pay standard has generated more than $2 billion in additional worker earnings since enforcement began in December 2023. 

New York City currently requires covered restaurant and grocery delivery apps to pay workers at least $22.13 per hour, excluding tips, for the time they spend preparing for or making deliveries.

The minimum rate is scheduled to increase each April. 

Why the City Adopted the Tipping Rules

When New York City’s minimum-pay standard took effect in 2023, DCWP said Uber Eats and DoorDash changed their interfaces in ways that made tipping less visible.

Instead of presenting the tip option prominently at checkout, the platforms moved it to screens that customers might not see until after a delivery had been completed.

An earlier DCWP analysis estimated that those design changes cost delivery workers approximately $550 million in tips.

The City Council later approved legislation requiring clearer tipping options. DCWP began enforcing the protections in January. 

Deputy Mayor for Economic Justice Julie Su said a customer’s tip should reach the person performing the delivery.

“When a customer leaves a tip, that money belongs to the delivery worker, not to the app,” Su said.

Tips Have Improved but Remain Below Earlier Levels

The report also included an important limitation.

Although average tips rose to $2.29 per delivery after the new law took effect, they remained below the $3.66 average recorded in November 2023, shortly before major platforms changed their tipping screens.

DCWP said the new law does not require apps to fully restore their previous checkout designs.

The agency also reported that some apps have displayed lower default tipping percentages in New York City than they use in other markets. 

That means the latest earnings gain is significant, but it may not represent a complete recovery of the tips workers once received.

Grocery Delivery Workers Gain Protections

The city has also expanded minimum-pay protections to workers making grocery deliveries through apps such as Instacart and Shipt.

DCWP estimates that the expansion covers another 26,000 workers.

Delivery services must also provide workers with:

• The routed distance for a proposed trip

• Detailed weekly pay statements

• Information about their workplace rights

• Access to complaint procedures

The city plans to establish additional minimum-pay requirements in 2027 for contracted delivery workers who are not already covered by the existing restaurant and grocery rules. 

What Delivery Workers Should Know

What is the NYC delivery worker minimum-pay rule?

It is a city requirement that covered restaurant and grocery delivery apps pay workers at least $22.13 per hour, excluding tips, for qualifying time spent preparing and completing deliveries.

Workers have these rights regardless of immigration status, according to DCWP.

Delivery workers may also file complaints when they believe an app has failed to pay the required rate. City law gives workers additional protections involving pay records, trip information and access to bathrooms at businesses where they pick up orders. 

A Broader Test for the Gig Economy

New York City’s enforcement campaign could influence debates in other cities considering rules for app-based work.

Supporters argue that delivery platforms should not be allowed to use confusing screen designs to reduce worker income. They also say minimum-pay laws provide greater stability for workers who pay for bicycles, phones, repairs and other job-related costs.

Critics of tighter regulation often warn that higher labor costs could lead to increased customer fees, fewer orders or reduced opportunities for flexible work.

The city’s early data indicates that order volume remained high while tips and total earnings rose. Still, the long-term effects will depend on how platforms respond, how customers react and whether enforcement remains consistent.

For now, the report offers a clear lesson: small choices in app design can produce major financial consequences for workers.

Conclusion

New York City’s tipping rules have delivered a measurable increase in earnings for thousands of delivery workers. Average tips nearly doubled, workers gained an estimated $104 million, and customer demand remained strong during the period reviewed.

Yet the data also shows that tips have not fully returned to their late-2023 level.

City leaders should continue publishing detailed information about pay, fees, order volume and enforcement. Delivery companies should make compensation systems easy to understand, and customers should review every checkout screen carefully to ensure their intended tip reaches the worker.

The people who carry meals through rain, traffic and extreme heat deserve clear rules, honest technology and every dollar they have earned.

Sources

• New York City Mayor’s Office announcement and official statements. 

• July 2026 Department of Consumer and Worker Protection delivery-app report. 

• DCWP delivery worker rights and minimum-pay guidance.