NYC Secures $5.2 Million in Restitution for Delivery Workers

Settlement with Uber Eats, Fantuan, and HungryPanda signals tougher oversight of gig economy platforms

Feb. 21, 2026 at 8:21pm

Got story updates? Submit your updates here. ›

New York City has secured over $5 million in restitution, penalties, and damages from Uber Eats, Fantuan, and HungryPanda for violations of the city's Minimum Pay Rate for delivery workers. The enforcement action, led by Mayor Zohran Mamdani and the Department of Consumer and Worker Protection, is seen as a broader shift in how cities are approaching the regulation of the gig economy and worker protections.

Why it matters

This settlement is not just about recovering lost wages, but also signals a new era of proactive enforcement and worker protection in the gig economy. The success of New York City's approach is likely to inspire similar actions in other municipalities grappling with the challenges of app-based delivery platforms and worker exploitation.

The details

The settlement resolves violations of the city's Minimum Pay Rate that occurred between December 2023 and September 2024. Uber Eats will pay $3.15 million in restitution to over 48,000 workers, plus $350,000 in penalties. Fantuan will contribute over $468,000 to 285 workers and $52,000 in penalties, while HungryPanda will pay $1,068,672 to over 1,000 workers and $106,327 in penalties. Critically, Uber has agreed to reinstate up to 10,000 workers who were wrongfully deactivated from the platform.

  • The settlement resolves violations that occurred between December 2023 and September 2024.
  • New York City's Minimum Pay Rate is scheduled to rise to $22.13 per hour on April 1, 2026.

The players

Zohran Mamdani

The Mayor of New York City who spearheaded the enforcement action.

Sam Levine

The Commissioner of the New York City Department of Consumer and Worker Protection.

Uber Eats

One of the app-based delivery platforms that was part of the settlement.

Fantuan

One of the app-based delivery platforms that was part of the settlement.

HungryPanda

One of the app-based delivery platforms that was part of the settlement.

Got photos? Submit your photos here. ›

What they’re saying

“Cheating workers will not be tolerated.”

— Sam Levine, Commissioner, New York City Department of Consumer and Worker Protection (newsy-today.com)

“This settlement is a turning point, and it shows that exploitation is baked into the app delivery business model.”

— Ligia Guallpa, Executive Director, Worker's Justice Project (newsy-today.com)

What’s next

The success of New York City's approach is likely to inspire similar actions in other municipalities grappling with the challenges of the gig economy, such as Chicago, Seattle, and Los Angeles.

The takeaway

New York City's aggressive stance on worker protections in the gig economy, combined with proactive enforcement and legal action, sets a precedent for other cities to follow in addressing the exploitation of app-based delivery workers.