New York City is taking on Amazon (
AMZN) with a bill that would require delivery companies to directly employ last-mile workers instead of relying on third-party subcontractors. The Delivery Protection Act was introduced this year by New York City Council member Tiffany Cabán and is backed by Mayor Zohran Mamdani.
More oversight: The legislation would create a licensing system for certain last-mile warehouses and distribution facilities. It would also set minimum safety, training and worker protection standards while holding the company operating the last-mile facility responsible for employing the workers there. While Amazon is the main target, firms like FedEx (
FDX) and UPS (
UPS) would also be affected. "Corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of
exploitative subcontracting," Mamdani said, pointing to higher instances of traffic accidents and worker injuries. He added that the bill is "commonsense regulation" that ensures the companies benefiting from workers' labor are responsible for the consequences of their business practices.
Bigger picture: If the measure passes, it could offer a template for other cities and states to tighten oversight of Amazon – the second-largest private employer in the U.S. "Amazon's Delivery Service Partner model is the
most dangerous business model in America today," said Teamsters General President Sean O'Brien. "The Delivery Protection Act is the blueprint for how workers can fight back against Amazon's greed." The e-commerce giant in April said the bill would force it to consider relocating its delivery operations outside New York City. The Amazon-backed New York Delivers coalition warned that the legislation would "put jobs at risk, raise costs for working families, and make it harder for small businesses — especially in the outer boroughs — to survive." Teamsters claimed that Amazon spent over $5M to "bankroll a dark money campaign" against the bill. (
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Legal pushback: It's likely that the legislation would wind up in court, similar to another controversial move by Mamdani – the
pied-à-terre tax. A judge on Monday temporarily blocked the tax on high-value second homes in New York City while a lawsuit by homeowners moves forward. "The NYC Pied-a-Terre Tax is costing New York City and State a fortune in that the money, eventually to be gotten, is very little compared to the TAXES PAID by the tens of thousands of people who are fleeing the City, never to return," President Donald Trump posted on Truth Social. "I am looking to see if the Federal Government has any legal right to avert this disaster, before it is too late."
Bill Ackman says socialism is a disaster, citing Mamdani's policies
