NYC's New Tipping Law: A Win for Delivery Workers?

A new New York City law is set to change the checkout experience for thousands of food delivery customers. Effective January 26, apps like DoorDash and Uber Eats must display a tip prompt when customers pay for their order.

The legislation requires a default 10% gratuity option at checkout, a move designed to support delivery workers who rely heavily on tips. This change comes roughly two years after many apps moved the tipping option to after an order was delivered.

While delivery workers and advocacy groups welcome the law as a necessary financial boost, the apps themselves have fought the measure in court. They argue that mandating a tip prompt could lead to tipping fatigue and a decline in orders for local businesses.

The law, enforced by the city's Department of Consumer and Worker Protection (DCWP), mandates that all food delivery apps operating in NYC provide a clear tipping option during the payment process. This reverses a trend that began in late 2023, when companies like DoorDash removed the checkout tip prompt.

According to city officials, the technology to implement this change is readily available. Elizabeth Wagoner, a deputy commissioner at the DCWP, noted that companies previously offered this feature and have the capability to restore it immediately.

Key requirements under the new law include:

• Displaying a tip option at the checkout screen
• Setting the default gratuity to 10%
• Allowing customers the final choice to adjust or decline the tip

The DCWP plans to actively monitor compliance and will pursue legal action if apps fail to adhere to the new standards.

For many delivery workers, tips are not just extra income—they are essential to making the job financially viable. The city estimates that workers have missed out on approximately $550 million in tips since the tipping option was moved to post-delivery in December 2023.

The financial strain has been significant. Ligia Guallpa, executive director of the Workers Justice Project, explained that reduced tips have forced many couriers to take on extra orders just to cover operating costs, such as e-bike maintenance.

"Often, tipping allows them to have the additional income that they need to cover the additional operating costs,"

Worker testimonials highlight the disparity. Ricky, a delivery worker for Uber Eats and DoorDash in Brooklyn, noted that Grubhub workers—who retained the checkout tip prompt—often earn double what he makes on a good day.

"When they show me their earnings, they make a significant amount of tips,"

Ricky expressed hope that the new law will provide the motivation to work longer hours, stating that a boost in earnings would encourage him to stay outside and work all day.

Despite the potential benefits for workers, Uber Eats and DoorDash have vigorously opposed the legislation. The companies filed a lawsuit last month to block the law, arguing that a mandatory tip prompt at checkout would create "tipping fatigue" among customers.

The legal challenge was unsuccessful. On Friday, a federal judge rejected the suit, allowing the law to take effect.

Following the court decision, a DoorDash spokesperson expressed concern over the potential consequences for the local economy. They warned that the law could result in:

• An immediate drop-off in orders for New York's small businesses
• A worse experience for customers
• Fewer overall deliveries for New York City dashers

Uber did not respond to requests for comment regarding the new law. Historically, DoorDash has warned customers that orders might take longer to arrive if tips are not provided in advance, a practice that may influence customer behavior under the new system.

This tipping legislation is part of a larger wave of gig worker protections being prioritized by the New York City government. Since Mayor Zohran Mamdani took office on January 1, the DCWP has focused on enforcing existing minimum pay laws alongside the new tip regulations.

The debate over tipping etiquette has intensified across the service industry, but it holds particular weight for delivery couriers. Data analytics company Gridwise reported that nationally, tips accounted for almost 49% of food delivery workers' earnings in 2025.

As the law goes into effect, the city is betting that the visibility of the tip option will significantly alter the financial landscape for the city's delivery workforce. The coming months will reveal whether the anticipated increase in gratuities materializes and how the apps adapt to the new regulatory environment.

The implementation of New York City's new tipping law marks a pivotal moment for the gig economy within the region. By mandating a default 10% tip at checkout, the city aims to restore a revenue stream that delivery workers lost when apps shifted tipping to post-delivery.

While Uber Eats and DoorDash predict negative outcomes for businesses and customers, worker advocacy groups remain optimistic about the financial relief this change will provide. The success of the law will likely be measured by the earnings reports of couriers in the coming weeks.

Ultimately, this legislation highlights the ongoing tension between corporate interests and labor rights in the digital age. As enforcement begins, all eyes will be on New York City to see if this model influences tipping policies in other municipalities.