Amazon faces legal and legislative challenges over NYC delivery model

Amazon and its subcontractors are facing legal and legislative challenges in New York City regarding their delivery driver employment model. The International Brotherhood of Teamsters has filed a complaint with the New York Labor Department, alleging that Amazon and 13 delivery service partners (DSPs) violated the state’s WARN Act. The union claims more than 1,300 drivers were laid off or saw sites closed between September 2023 and October 2025 without the legally required 90-day notice, potentially owing workers up to $11 million in back wages and penalties.

Simultaneously, a proposed local law known as the Delivery Protection Act aims to fundamentally change how last-mile deliveries operate in the city. Introduced by Queens Councilmember Tiffany Cabán, the bill would require operators of warehouse and distribution facilities to directly employ core delivery and warehouse workers rather than using third-party contractors. Supporters argue the bill will increase accountability for driver safety and quotas, while opponents, including Amazon, warn it could increase shipping costs and drive distribution hubs out of New York City into neighboring areas like New Jersey.