New York Delivery App Operator Faces Ban for Alleged Worker Underpayment

TITLE: New York Delivery App Operator Faces Ban for Alleged Worker Underpayment
SLUG: new-york-delivery-app-operator-faces-ban-alleged-worker-underpayment
EXCERPT: Mayor Mamdani’s administration is seeking to ban Motoclick, a delivery platform, after it allegedly paid workers as little as $1.82 per hour, significantly below the city’s minimum wage.
CATEGORY: policy-governance
TAGS: delivery workers, minimum wage, labour rights, app platforms, New York City
SEO_TITLE: Motoclick Faces Ban in NYC Over Alleged Sub-Minimum Wage Payments to Delivery Workers
SEO_DESCRIPTION: New York City is moving to ban delivery app operator Motoclick for systematically underpaying its workers, with allegations of payments as low as $1.82 per hour.
MEDIA_QUERY: New York City street with delivery cyclists
IMAGE_ALT: Delivery cyclists on a New York City street

The administration of New York City Mayor Mamdani has initiated legal action to ban the food delivery platform Motoclick, citing the company’s alleged systematic underpayment of its delivery workers. City officials revealed in federal court filings that Motoclick admitted to paying some workers as little as $1.82 per hour in April and between $3.67 and $4.67 per hour in May. These figures are a fraction of the city’s legally mandated minimum pay rate for delivery workers, which stands at $22.13 per hour.

Por que importa

The legal move comes as part of an ongoing federal lawsuit against Motoclick and its CEO, Juan Pablo Salinas Salek. The city’s Corporation Counsel, Steve Banks, stated that such low hourly payments are “morally wrong” and illegal, emphasizing New York City’s commitment to protecting workers from exploitation.

Motoclick operates as a business-to-business service, partnering with restaurants to provide delivery workers for orders placed through other major apps, including Uber Eats, DoorDash, Grubhub, and Delivery.com. The company’s model allows restaurants to offer delivery services at a potentially lower cost by utilising Motoclick’s network.

Contexto

The Mamdani administration’s lawsuit against Motoclick and Salek began in January, following a prolonged investigation by the Department of Consumer and Worker Protection (DCWP). The investigation was prompted by over 20 worker complaints regarding violations of minimum wage laws, which commenced in February 2024. With Motoclick’s admissions of underpayment, the city is now urging a federal judge to halt the company’s operations in New York City while the lawsuit proceeds.

DCWP Commissioner Samuel Levine condemned the company’s alleged actions, stating, “Flouting the law and illegally underpaying workers is simply unacceptable.” He added that the DCWP is taking “immediate action to shut Motoclick down unless and until it comes into compliance,” asserting that “New York will not allow this company to continue underpaying New Yorkers.”

This case draws parallels to the situation with Relay, another delivery app that ceased operations after Grubhub contracted with it to circumvent minimum pay standards for delivery workers in 2024. Motoclick’s use of “self-delivery” options offered by larger apps enables eateries to access cheaper delivery solutions.

The lawsuit further accuses Salek of orchestrating a “scam that targets and steals from immigrant workers.” According to the city’s allegations, Salek personally recruited Spanish-speaking immigrants via WhatsApp starting in April 2022, subsequently withholding their tips and earnings while failing to provide minimum wage compensation. Workers reportedly accepted deliveries through the “Moto Driver” app or WhatsApp without prior knowledge of payment amounts or travel distances, a direct contravention of city delivery worker laws. As of recent checks, Motoclick’s website still listed the WhatsApp recruitment number, and its Instagram feed featured Spanish-language AI-generated videos directing potential workers to the platform.

Further allegations detail that Motoclick deducted fees from workers, including $10 charges for cancelled orders, which in some instances resulted in workers having negative balances with the company. A letter from the DCWP to Motoclick in February 2024 reportedly went unanswered for nine months before an assistant manager claimed ignorance of the city’s minimum pay standard.

Motoclick and Salek have denied the allegations, arguing in court filings that the minimum wage law itself is unconstitutional. This argument has been rejected in previous court cases involving other app-based companies. Patio Delivery Inc., Motoclick’s parent company, was founded by Salek in 2015 and incorporated as “Motoclick” in New York City in 2021.

The DCWP, under Commissioner Levine, has been actively pursuing legal action against app companies, securing over $9.3 million in restitution for workers from platforms like Fantuan and Hungry Panda. Mayor Mamdani has also initiated safety training programs for delivery workers and issued compliance warnings to industry stakeholders. App companies have reportedly invested significantly in political campaigns, supporting candidates who opposed the city’s regulatory efforts. Despite these challenges, New York City’s regulations mandating minimum pay standards and increased transparency for app-based delivery workers have withstood legal scrutiny.

Ligia Guallpa, executive director of the Worker’s Justice Project and a co-founder of Los Deliveristas Unidos, expressed gratitude for the city’s action, stating, “No worker should be earning three or four dollars an hour while delivery companies profit from their labor.”

Following the initial report, a company representative informed Streetsblog via text that Motoclick had filed its wage data incorrectly and would provide corrected information by Friday, stating, “We are not paying our drivers 4$ per hour, I have NO clue where they got that. 4$ is probably what we paid excluding tip for a 8 minute trip.”

Key facts
| Detail | Information |
|—|—|
| Company in question | Motoclick |
| Alleged violation | Underpayment of delivery workers |
| Minimum wage rate | $22.13 per hour |
| Alleged worker pay | As low as $1.82 per hour |
| City agency involved | Department of Consumer and Worker Protection (DCWP) |
| Legal action | Federal lawsuit and request for business ban |

This case highlights the ongoing tension between app-based gig economy platforms and labour regulations designed to protect workers. The city’s efforts to enforce minimum wage laws against companies like Motoclick underscore a broader trend of increased scrutiny on platform business models and their impact on worker compensation and rights. The outcome could set further precedents for the regulation of delivery services and other app-based industries operating within New York City.

Source: Streetsblog NYC, https://nyc.streetsblog.org/2026/06/24/mamdani-moves-to-ban-scam-delivery-app-motoclick-for-underpaying-workers

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