Uber Eats, Fantuan, and HungryPanda to Pay $5.19 Million in Restitution and Penalties; Up to 10,000 Workers Eligible for Reinstatement
Our Bureau
New York, NY
Mayor Zohran Kwame Mamdani and Department of Consumer and Worker Protection (DCWP) Commissioner Sam Levine have announced more than $5 million in restitution, civil penalties, and damages secured from three major restaurant delivery app companies for violations of New York City’s Minimum Pay Rate law for app-based delivery workers.
Under the settlement, Uber Eats, Fantuan, and HungryPanda will collectively pay $5,195,000, benefiting more than 49,000 delivery workers citywide. In addition, Uber Eats has agreed to reinstate workers wrongfully deactivated between December 2023 and September 2024, potentially restoring access to work for as many as 10,000 delivery workers.
“In the first month of this administration, our city has made one thing unmistakably clear: there is zero tolerance for exploiting workers, cutting corners on labor protections, or rigging our economy to serve wealthy corporations at the expense of working people,” said Mayor Zohran Kwame Mamdani. “This settlement delivers real relief to thousands of New Yorkers and draws a red line for corporate abuse. If you break the law and profit from exploitation, you will be held accountable—swiftly and directly.”
DCWP Commissioner Sam Levine emphasized that the settlement reflects a new era of enforcement. “The days of giant corporations juicing profits by underpaying workers are over,” Levine said. “We’re not only returning full back pay, but also recovering damages and penalties to send a strong message: cheating workers will not be tolerated in New York City.”
According to DCWP investigations, Uber Eats will pay $3.15 million in restitution to more than 48,000 workers, along with $350,000 in civil penalties and fees, after failing to pay the required minimum rate for time spent on canceled trips between December 2023 and September 2024. Fantuan will pay more than $468,000 in restitution to 285 workers, plus over $52,000 in penalties, for violations occurring between December 2023 and February 2024. HungryPanda will pay $1,068,672 in restitution to more than 1,000 workers, along with $106,327 in penalties, for violations between December 2023 and January 2024.
These cases highlight the effectiveness of DCWP’s compliance monitoring and enforcement systems, which combine monthly reporting requirements for app companies with targeted worker outreach. This approach allows the agency to rapidly identify violations, stop unlawful practices, and ensure workers receive both unpaid wages and additional compensation for harm suffered.
State and city leaders praised the settlement as a major victory for delivery workers, known as deliveristas, who form a vital part of New York City’s economy.
“New York will not stand by while corporations break the law and exploit working people,” said State Senator Kristen Gonzalez. “The minimum pay rate exists because workers deserve dignity, stability, and fair pay.”
Council Member Harvey Epstein, Chair of the Committee on Consumer and Worker Protection, called the agreement “a victory for working-class New Yorkers over corporate greed,” noting that delivery companies have long preyed on vulnerable, immigrant communities. “This settlement marks the beginning of a new era,” Epstein said.
Council Members Shaun Abreu, Sandy Nurse, and Jen Gutierrez echoed the sentiment, emphasizing that enforcement—combined with worker organizing and strong legislation—has finally begun to shift power away from multibillion-dollar app companies and back toward workers.
Labor advocates also welcomed the announcement. Ligia Guallpa, Executive Director of the Worker’s Justice Project and co-founder of Los Deliveristas Unidos, said the settlement confirms what workers have long argued. “Exploitation is not an accident—it’s baked into the app delivery business model,” she said. “Today’s victory shows that those days are coming to an end.”
The settlement comes as the Mamdani administration intensifies enforcement of the City’s Delivery Worker Laws. Earlier this month, DCWP filed a lawsuit against Motoclick and issued compliance warnings to more than 60 app companies, including DoorDash, Grubhub, Instacart, and Uber.
Recent legislation includes Local Law 113, increasing pay transparency; Local Laws 123 and 124, expanding minimum pay protections and payment rights; and Local Laws 107 and 108, requiring tipping options at checkout. A recent DCWP report found that DoorDash and Uber used interface design tactics that reduced worker tips by $550 million—practices that are now illegal.
New York City’s Minimum Pay Rate, first established under Local Law 115 of 2021, has significantly increased average hourly earnings for app-based delivery workers without reducing delivery volume. The rate will rise to $22.13 per hour for the first pay period on or after April 1, 2026, reflecting inflation adjustments.
With this settlement, city officials say New York is setting a national standard for protecting gig workers—proving that strong laws, real enforcement, and organized workers can hold even the most powerful corporations accountable.
