Instacart takes initiative to abolish minimum wage for grocery delivery personnel, warns potential lawsuits if Mayor Adams ratifies the legislation
In a recent development, Instacart has threatened to sue the City of New York if Mayor Eric Adams does not veto a bill passed by the City Council on July 14, 2025. The bill, known as Intro. 1135-A, aims to extend minimum pay protections to grocery delivery workers, requiring third-party platforms like Instacart to pay a minimum rate set by the city's Department of Consumer and Worker Protection (DCWP).
The bill, sponsored by Brooklyn Council Member Sandy Nurse, would mandate a minimum rate of $21.44 an hour or higher for grocery delivery workers. This rate is consistent with or greater than what restaurant delivery workers currently receive under a previously enacted law.
Instacart argues that the law would have "devastating consequences," including projected increases of over $10 per grocery delivery, potential widespread worker lockouts, and higher prices for small grocery stores. The company has launched a media campaign warning about these impacts, citing that the changes could upend its on-demand model, forcing it to introduce shift scheduling and limit how many workers can access the app.
The National Supermarket Association (NSA) is also advocating against the bill, citing potential steep fee hikes for small grocers. They argue that small grocers lack the ability to absorb higher costs, and digging deeper into their margins would worsen their financial strain.
However, Council Member Jennifer Gutiérrez's legislation in the package aims to strengthen delivery worker protections, including guaranteed access to bathrooms, the distribution of fire safety materials, and provisions for insulated delivery bags. The broader legislative package passed on July 14 aims to extend protections to all app-based delivery workers.
Council Member Nurse has accused Instacart of acting in bad faith and spreading lies and misinformation. She emphasises that the bill does not require grocery stores to partner with Instacart for their day-to-day operations.
As of late July 2025, Instacart's threat to sue remains contingent on whether Mayor Adams vetoes the bill; the company is urging the mayor to veto the legislation to avoid litigation. There is no public indication that legal action has yet been filed.
The Council has invested millions in home food delivery for mobility-impaired people, elders, and those with specific dietary needs. Council Member Shaun Abreu's bills in the package require third-party food and grocery delivery platforms to offer a tipping option of at least 10% on every order, make tipping available before or at checkout, and pay contracted workers within seven days of the end of each pay period.
The Mayor's spokesperson did not directly address Instacart's pressure campaign, only stating that Mayor Adams is still considering the legislation.
Thousands of New Yorkers could lose their ability to do grocery delivery work if bill 1135-A becomes law. The DCWP would be able to adjust the rate based on the nature of grocery work.
In summary, Instacart is actively opposing the minimum pay bill via a public campaign and formal legal threat but has not yet commenced a lawsuit against New York City as of July 2025. The Council's investment in home food delivery services for vulnerable populations, along with measures to strengthen delivery worker protections, underscores the importance of balancing the needs of workers and businesses in the city.
- The business sector, represented by Instacart, is challenging a bill called Intro. 1135-A, arguing that it would negatively impact the on-demand model and potentially increase delivery costs.
- The 'health-and-wellness' industry, in this case, the grocery delivery sector, is at the center of a dispute over minimum pay protections in the City of New York.
- The 'policy-and-legislation' process is currently underway, as the bill, if passed, could result in a lawsuit from Instacart, raising questions about the balance between worker protections and business operations.
- In the broader 'politics' and 'general-news' context, the dispute highlights the importance of considering the needs of both workers and businesses in shaping industry standards and regulations.
