Amazon warned that New York City’s proposed Delivery Protection Act could cost local households an estimated $664 annually while threatening more than 5,000 last-mile delivery jobs. The legislative proposal, backed by city officials, targets the corporate subcontracting models used by major distribution networks.
Delivery Protection Act Overview and City Backing
The Delivery Protection Act, sponsored by New York City Council Member Tiffany L. Cabán, aims to establish a licensing system for last-mile warehouses and distribution facilities. According to an announcement from the office of Mayor Zohran Kwame Mamdani, the legislation would hold the company operating the facility, such as Amazon, responsible for employing the workers performing core services, such as delivery, rather than relying on subcontractors.
City officials argue that the current subcontracting system insulates major corporations from accountability while pushing down labor standards. According to Deputy Mayor for Economic Justice Julie Su, Amazon maintains control over driver schedules, workloads, and uniforms while denying that those workers are employees. Proponents state the bill will close loopholes and improve safety for drivers and communities.
Economic Impact and Corporate Pushback
Amazon countered the legislative push by releasing impact projections indicating that the new regulatory compliance and mandatory direct-employment model would strain operational costs. According to company estimates, these expenses would trickle down to consumers, potentially adding $664 a year to the average household budget in New York City.
The company also warned that the legislation could jeopardize over 5,000 last-mile jobs. Since 2017, at least 18 large last-mile facilities have opened across New York City, with 11 of those launching since 2020.
Regulatory Enforcement and Safety Mandates
Supporters of the legislation maintain that increased municipal oversight is necessary to protect pedestrians. Samuel A.A. Levine, Commissioner of the NYC Department of Consumer and Worker Protection (DCWP), stated that the agency intends to use its authority to protect workers and fight for safe streets.
Under the proposed framework, the legislation would establish new safety, training, and labor standards. City leaders maintain that corporations benefiting from local labor infrastructure must bear the responsibility of community safety and worker stability.
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