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Judge Upholds NYC Tipping Law, Boosting Delivery Workers' Pay

1/23/2026

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Summary

Story summary

A federal judge upheld a New York City law requiring delivery apps to offer a tipping option before checkout.
City officials say the policy increased delivery workers’ pay by about $1.2 billion.
Delivery companies argue the tipping requirement pressures customers to tip upfront.
Critics warn this could lead to resentment and higher prices.
A report alleges the companies altered their apps, causing a $550 million drop in worker tips.

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Story summary

A federal judge upheld a New York City law requiring delivery apps to offer a tipping option before checkout.
City officials say the policy increased delivery workers’ pay by about $1.2 billion.
Delivery companies argue the tipping requirement pressures customers to tip upfront.
Critics warn this could lead to resentment and higher prices.
A report alleges the companies altered their apps, causing a $550 million drop in worker tips.