NYC Alleges Serious Wage and Hour Violations by Motoclick
The New York City Department of Consumer and Worker Protection has filed a request in federal court to ban a food delivery app from conducting business within the city, citing extensive violations of state and federal wage and hour laws. The city sought a preliminary injunction against Motoclick (a business of Patio Delivery, Inc.), a company that competes directly with such well-known app-based enterprises as DoorDash, UberEats and Grubhub.
The Nature of the Violations
According to documents filed in the Federal District Court for the Southern District of New York, Motoclick has a long history of paying workers below the legal minimum wage and of wrongfully deducting fees from workers’ pay. The City filed a lawsuit alleging violation of federal law back in January, providing documents that showed workers were typically paid between $3.67 and $4.67 per month, far below the $22.13 established by the minimum pay scale.
Mayor Zohran Mamdani has aggressively fought for the rights of workers in New York City, getting nearly $10 million in restitution from employers in violation of wage and hour laws. The app-driven food delivery business has a well-known reputation for such violations. Since Mamdani took office, the New York City Department of Consumer and Worker Protection (DCWP) has collected in excess of $5 million from Uber Eats, Fantuan and HungryPanda.
Let Stephen Hans & Associates Help You Ensure Compliance with New York Employment and Labor Laws
At Stephen Hans & Associates, we have successfully advised and represented many New York City employers many years, helping them meet employment law requirements and protecting their rights in employment litigation, including claims involving allegations of workplace retaliation. Susan Lacerte, executive director of the Queens Botanical Garden has lauded us for our “dedication, knowledge and experience” and for helping the Botanical Gardens “successfully resolve difficult legal issues with [our] talent, negotiating skills, personal care and attention.”
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