NYC bill would force Amazon to hire 5,000 delivery workers directly

New York City's Delivery Protection Act would force Amazon and other large delivery operators to directly employ more than 5,000 contract couriers, a shift that could add $664 per household annually to delivery costs, according to a study commissioned by local chambers of commerce.

"Corporations like Amazon build billion-dollar business models by insulating themselves from accountability through a system of exploitative subcontracting," Mayor Zohran Mamdani said in a statement. "The Delivery Protection Act is commonsense regulation that protects delivery workers, safeguards the communities where these facilities operate and ensures that the corporations benefiting from workers' labor are responsible for the consequences of their business practices."

The bill, introduced by Queens Councilmember Tiffany Cabán, would require last-mile warehouse operators to obtain licenses from the Department of Consumer and Worker Protection. To qualify, operators must meet new safety, training and employment requirements — including hiring contract couriers as direct employees. Amazon relies on more than 40 third-party delivery service partners in New York City that employ more than 5,000 people. The bill has 34 co-sponsors in the 51-member Council, enough to pass if Speaker Julie Menin brings it to a vote.

Amazon has threatened to relocate delivery operations outside city limits if the bill passes, which the company says would slow deliveries and raise costs for millions of New Yorkers. The AKRF study, commissioned by a coalition of local chambers of commerce, projects the changes could cost New York City households an additional $664 a year. The Trucking Association of New York also opposes the measure, arguing it would push the city toward relying on larger trucks from farther away.

The Subcontracting Loophole

Amazon's delivery service partner model has been a flashpoint for labor organizing. Drivers at two Queens warehouses — DBK1 in Woodside and DBK4 in Maspeth — unionized last year under the Teamsters, alleging poor treatment and retaliation from Amazon for speaking out about working conditions. Christian Trimboli, a former worker at a Queens facility, said he was fired last year after advocating for better conditions. "They believe that I was fired for speaking up on the job, for wanting to address that things need change here, that we deserve better," Trimboli said in December.

Deputy Mayor for Economic Justice Julie Su said the bill would "close this loophole, improve safety for drivers and communities and begin to correct the imbalance of power that massive corporations like Amazon have accumulated." The Teamsters, which represents the drivers at the two Queens warehouses, has pushed the bill alongside Amazon workers. "When Amazon shut down my DSP, essentially firing every one of us, they gave us less than a day's notice and did it over text," said Latrice Johnson, an Amazon Teamster. "No company should have that power over workers."

Industry Pushback and Cost Projections

Amazon spokesperson Kelly Nantel said the legislation would "directly undermine" the company's commitment to local small business partners, "putting the jobs of more than 5,000 of their employees at risk, and forcing us to consider relocating delivery operations outside of the city." The company has invited every Council member to visit its delivery stations.

The New York Delivers Coalition, representing small delivery businesses, urged Council members to consider the "real world ramifications" of the proposal, arguing that last-mile delivery "supports thousands of New Yorkers, including parents, caregivers, immigrants, veterans, and workers without four-year college degrees."

Since 2017, at least 18 last-mile warehouses have opened across New York City, according to the Mayor's office. Amazon shares fell 1.73 percent and FedEx dropped 0.77 percent on the day the mayor announced his support, reflecting investor uncertainty over the bill's potential impact on delivery economics.

Beyond Amazon, the legislation would extend similar requirements to any company operating last-mile delivery facilities in the city. Employers using subcontractor models would need to review their workforce management strategies, including training requirements, performance oversight, and direct hiring obligations. The success of the bill could prompt other cities and states to examine similar practices, particularly in regions where the Teamsters or other unions operate at scale.

The bill's passage would mark a significant shift in how gig-economy labor is classified in the city. If enacted, other municipalities with large union presences could pursue similar legislation, potentially reshaping the delivery logistics industry beyond New York. The Council has not yet scheduled a vote, and Speaker Menin has not publicly stated a position.

This article is for informational purposes only and does not constitute investment advice.