A proposed New York City law regulating parcel delivery operations is drawing opposition from business groups, while labor advocates argue it would strengthen worker protections and corporate accountability.
Business organizations have urged the City Council to reject the Delivery Protection Act, warning that its requirements could increase operating costs, disrupt delivery services and threaten jobs. The legislation remains under discussion and has not become law.
The proposal would require operators of covered last-mile warehouses and distribution facilities to directly employ core delivery and warehouse workers rather than use third-party contractors. It would also introduce facility licensing and additional safety and training standards, with a two-year transition period for the direct-employment requirement.
Supporters, including Teamsters activists and Amazon delivery workers, say subcontracting allows large companies to exercise control over deliveries while distancing themselves from responsibility for working conditions. They argue that direct employment would improve accountability and help raise standards across the industry.
Amazon has warned that the changes could force it to relocate delivery operations outside the city and undermine local businesses that handle its deliveries. Opponents also predict slower service and higher shipping costs, although those outcomes remain projections.
The impact would vary between carriers. UPS already directly employs its main delivery workforce, and an industry-backed analysis suggested it could gain business if competitors relying on contractors reduce their city operations.
