Instacart sues NYC over new worker pay laws

NEW YORK - Grocery delivery app Instacart has sued New York City over several new laws impacting grocery delivery worker pay.

Instacart sues NYC

What we know:

Instacart announced the lawsuit on Tuesday, Dec. 2. Specifically, the platform is taking issue with a set of five new laws that will increase grocery delivery worker pay, establish tipping standards and change how workers are paid, among other things.

For example, the new laws will allow workers to be paid when they're searching on the app or traveling to or waiting for a job. Right now, Instacart only pays workers once they've accepted and completed a job.

At the center of the lawsuit is Local Law 124, which requires grocery delivery workers receive the same pay as restaurant delivery workers.

What they're saying:

Instacart argues that the laws are illegal and that the federal and state governments are the ones who control pay for delivery workers.

In their lawsuit, the company argues that the laws will "degrade" business, and says that it would "be forced to overhaul its platform and business model," which could lead to increased prices and even potentially limiting access to users to manage expenses.

Local Law 124 bases most of its argument on the similarities between grocery delivery and restaurant delivery, but Instacart argues that the two are "fundamentally different," and therefore should not have the same requirements.

The other side:

The New York Department of Consumer and Worker Protection responded to the lawsuit on social media on Tuesday. Officials say that under Instacart's current pay model, workers are not making minimum wage.

"App-based grocery delivery workers, like all workers, deserve fair and dignified compensation for their labor, and it is disappointing that Instacart disagrees," the department said.

According to DCWP, Instacart shoppers currently make $13 an hour with no benefits. 

"No business in New York could legally compensate employees at such a low level," DCWP said on X. "These workers deserve better."

Worker advocates like Ligia Guallpa with Worker's Justice Project claim that Instacart has "been using flexibility as an excuse to underpay workers."

Previous lawsuit against NYC

The backstory:

The new laws for grocery delivery workers are based on laws the city passed in 2023, establishing a new minimum wage for restaurant delivery workers. 

Shortly after that law was passed, DoorDash, Grubhub and Uber Eats all sued New York City, arguing in part that the law would raise costs for the delivery services and customers. The two sides settled that lawsuit earlier this year. 

When do the new laws go into effect?

What's next:

These laws are expected to go into effect on Jan. 26, 2026.