DCWP Files Suit Against Motoclick for Ignoring Pay Requirments

The New York Metropolis Division of Shopper and Employee Safety (DCWP) and its new Commissioner, Samuel Levine, are transferring shortly to advance a brand new period of client safety, with an preliminary deal with app-based supply firms. The primary lawsuit filed by DCWP underneath Levine reveals a selected tactic that may get the eye of this and different industries: suing firm CEOs of their particular person capacities.

As we beforehand reported, the DCWP is at the vanguard of mayor mamdanni’s Populist agenda. On January 15, 2026, DCWP filed a lawsuit in opposition to Motoclick, alleging that it ignored minimal pay necessities for supply employees, “stole” earnings from supply drivers, and charged them unlawful charges. The lawsuit seeks full pay and damages for the employees. “No govt ought to be exploiting employees to line their very own pockets. We are going to combat in courtroom to make employees entire and guarantee that it’s going to by no means occur once more in our metropolis,” stated Levine.

Along with suing Motoclick, DCWP sued the CEO of Motoclick individually. That is per approaches taken by Levine and former FTC Chair Lina Khan (who’s co-chair of Mayor Mamdani’s transition group) once they had been on the FTC. On the press convention asserting the lawsuit, Levine cited previous examples the place the FTC named an govt as a defendant and indicated that whether or not to take action going ahead in different circumstances would rely upon the specifics of every case. “New Yorkers who velocity or who park illegally get tickets, I don’t know why executives ought to get immunity once they break the legislation,” Levine stated.

The lawsuit in opposition to Motoclick is a part of a broader and sweeping effort by DCWP to advance protections for app-based supply employees. On January 13, 2026, DCWP issued a report alleging that two different app-based firms had altered their tipping interfaces to deprive supply employees of $550 million in suggestions. DCWP additionally despatched compliance warning notices to app-based supply firms informing them that they should begin following NYC’s supply employee legal guidelines. On January 15, 2026, shortly after submitting the lawsuit in opposition to Motoclick, Mayor Mamdani introduced a brand new activity pressure in opposition to “predatory supply apps.”

“That is an announcement . . . for each deliverista throughout this metropolis that that is an indicator of the brand new period . . . and that’s simply not holding Motoclick to account however holding any app firm to account if they’re working exterior of the principles and the legal guidelines of New York Metropolis,” stated Mayor Mamdani. “What New Yorkers deserve is a DCWP that’s simply as relentless in its pursuit of justice and its pursuit of equity as firms are of their pursuit of illegality.”

Mamdani additionally acknowledged that it will take extra funding for DCWP to allow it to satisfy its new mandate. He didn’t present specifics as to what degree of funding he would request for DCWP.