New York City Mayor Zohran Mamdani has announced his support for the Delivery Protection Act, legislation introduced by City Council Member Tiffany Cabán that would require Amazon and other companies to employ last-mile warehouse and delivery workers directly rather than through third-party contractors.
The bill represents one of the most aggressive challenges yet to the gig-economy business model in a major U.S. city, targeting what Mamdani has described as exploitative labor practices in the delivery sector.
"Using delivery contractors to perform essential work is exploitation," Mamdani said in announcing his support for the legislation. "Workers who deliver packages, sort inventory, and keep supply chains moving deserve the protections and benefits that come with direct employment."
What the Right Is Saying
Critics of the legislation argue it could harm the very workers it aims to protect by reducing job opportunities and increasing costs for consumers.
Some business groups have raised concerns about the timing and scope of the bill. "Mandating direct employment across an entire sector could eliminate flexible gig opportunities that many workers prefer," said a spokesperson for the New York City Chamber of Commerce. "We need solutions that expand worker protections without destroying job flexibility."
Others have pointed to what they describe as inconsistency in Mamdani's position, noting that city agencies themselves utilize contractor arrangements for certain services.
What the Left Is Saying
Progressive advocates and labor organizations have praised the Delivery Protection Act as a necessary step to address worker misclassification in the rapidly growing delivery economy.
Council Member Cabán framed the legislation as a worker protection measure. "Last-mile delivery workers face high injury rates, unpredictable schedules, and systematically denied benefits because companies classify them as independent contractors," she said. "This bill simply requires companies to follow existing labor law."
The New York City Central Labor Council has endorsed the measure, arguing that taxpayer-funded municipal contracts should not go to companies that rely on contractor models. "When Amazon bids on city logistics contracts, they shouldn't be doing so with a workforce they've stripped of basic protections," said Labor Council President Vincent Alvarez.
What the Numbers Show
Amazon employs approximately 6,000 last-mile delivery and warehouse workers in New York City, according to company disclosures. An additional estimated 3,500 workers operate through third-party delivery service partners under the company's contractor model.
Nationally, Amazon's delivery network includes more than 400 independent delivery businesses employing over 100,000 drivers, according to company data from 2025.
The U.S. Bureau of Labor Statistics reports that gig economy workers in transportation and delivery roles increased by 23% between 2021 and 2024.
The Bottom Line
If signed into law, the Delivery Protection Act would take effect in January 2027, giving Amazon and other affected companies approximately six months to restructure their workforce arrangements. Companies that fail to comply could face penalties of up to $5,000 per worker per violation.
The legislation is expected to face legal challenges, with industry groups arguing it conflicts with federal labor classification standards. The outcome could set a precedent for similar measures in other major metropolitan areas.
Mamdani has indicated he will hold a public comment period before signing the bill into law.