Overview
- The companies filed a joint federal lawsuit in the Southern District of New York seeking to halt the measure before its late-January 2026 effective date.
- Local laws 107, 108, and 113 require apps to offer a tipping option at checkout with a 10% suggested default and to pay couriers within seven days after a pay period.
- Uber and DoorDash contend the mandate forces them to display a government message in violation of the First Amendment and will worsen tipping fatigue that reduces orders.
- New York City officials defended the policy, with the Department of Consumer and Worker Protection calling the lawsuit disappointing and saying the rules support delivery workers’ pay.
- The dispute follows the apps’ 2023 shift of tip prompts to later in the order process; a city report later found app fees rose 46% and tip amounts fell 68% year over year.