Instacart sues New York City over minimum pay, tipping laws

Source: Engadget

Overview

You can tell a lot about a company by what they’re willing to sue over. Take Instacart, which just filed a lawsuit against New York City. Its beef? The company doesn’t like five new city laws, set to take effect in January. They would require Instacart to pay workers more and give customers a tipping option that the gig‑economy platform says would “fundamentally alter” its business model.

Instacart argues that the legislation would force it to treat its independent contractors as employees, a move that could dramatically increase its operating costs. The company is seeking a preliminary injunction to block the rules while the case proceeds.

The city’s new regulations are part of a broader effort to improve gig‑worker protections, including a guaranteed minimum wage and a mandatory tip‑sharing system. If the lawsuit succeeds, Instacart could avoid having to restructure its workforce in New York, but the legal battle also highlights the growing tension between gig‑economy firms and municipal governments over labor standards.