Instacart Files Lawsuit Against New York City Over Worker Laws

by Cedric ‘BIG CED’ Thornton

December 3, 2025

The company claims that the new laws ‘threatens to eliminate earnings opportunities for as many as 40% of Instacart shoppers in New York City.’

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As the city of New York prepares to implement new laws for grocery delivery workers, Instacart filed a lawsuit against the city, arguing that the regulations would harm consumers and grocers.

According to Reuters, the company filed a lawsuit Dec. 2 in Manhattan Federal Court, citing several laws that directly affect the San Francisco-based Instacart. The laws will take effect Jan. 26, and the company claims they will harm customers and grocers by raising delivery costs.

They state that Congress prohibits state and local governments from regulating prices and services for customers of platforms like theirs. They also note that the U.S. Constitution prevents states and local governments from discriminating against companies that earn revenue from out-of-state operations.

The lawsuit challenges Local Law 124. This law requires companies to offer grocery delivery workers the same minimum pay as restaurant delivery workers. They also challenge Local Law 107, which requires consumers to be given the option to tip at least 10% of the purchase price or manually enter a tip amount.

In a blog post, Instacart explains why it has taken legal action.

“It threatens to eliminate earnings opportunities for as many as 40% of Instacart shoppers in New York City — equal to the share of restaurant delivery workers who lost access to work when a similar law took effect in 2023, according to the city’s own data. At the same time, the law is expected to increase grocery delivery costs for hardworking NYC families and could dent demand and sales for local grocers in the city.”

In the lawsuit, the company says, “Instacart’s business depends on the flexibility, independence, and convenience that its platform offers. The local laws will degrade that business.”

When the new laws are implemented next year, the company will be forced to change how it does business in the city.

“Instacart will be forced to restructure its platform, restrict shoppers’ access to work, disrupt relationships with consumers and retailers, and suffer constitutional injuries with no adequate legal remedy,” the complaint said.

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