NYC Business Groups Urge Council to Reject Labor Bill, Citing Job Losses

A coalition of business groups is urging the New York City Council to reject a proposed labor bill, arguing it would impose significant costs on companies and lead to job losses. The Delivery Protection Act, backed by Mayor Zohran Mamdani and other progressives, aims to streamline safety training and operations for delivery companies.

In a letter sent Tuesday to the City Council and Speaker Julie Menin, organizations including the Taxpayers Protection Alliance and the American Consumer Institute warned that the bill's mandates would place a "substantial cost" on businesses like Amazon and UPS, potentially impacting consumers. The proposed legislation prohibits delivery companies from using third-party contractors or gig workers for their fulfillment processes.

Companies that fail to comply would face a financial penalty of $500,000 to the city's Department of Consumer and Worker Protection for each worker not classified as an employee. The business groups contend that these requirements create a strong incentive for businesses to abandon independent contracting altogether.

Amazon has already stated that the bill could prompt it to close over a dozen warehouses and relocate thousands of workers out of New York City. Critics also pointed to an op-ed in the Washington Examiner, which suggested that such policies could increase costs for residents by approximately $664 per year due to passed-on expenses. The coalition also expressed concern that the bill could disproportionately affect small businesses, which may struggle to adapt to large-scale administrative changes.

The legislation, sponsored by Council Member Tiffany Cabán, has garnered support from 35 co-sponsors, potentially giving it a veto-proof majority. Delivery worker unions, including the International Brotherhood of Teamsters and the Workers Justice Project, have also backed the bill. The bill is currently awaiting a vote in committee before it can be considered by the full City Council.