The recently proposed Delivery Protection Act has now been sponsored by a supermajority of New York City Council members. While the bill has not yet been voted on, the broad support makes passage highly likely. The proposed law would introduce significant new requirements for package-delivery warehouses, which include facilities where companies such as Amazon and other delivery services receive goods and distribute them for final delivery to NYC consumers. The legislation is designed to enhance safety, improve working conditions, and increase oversight of the growing “last-mile” delivery industry.
What Types of Facilities Are Covered?
The law applies to “last-mile delivery facilities”—which are defined as:
- Warehouses or storage sites that receive goods and then ship them to customers in NYC.
The law would not apply to retail stores where most of the space is devoted to in-person sales.
Key Changes Businesses Need to Know
1. Facilities Must Now Get a City License
To operate in NYC, these warehouses will need a license from the Department of Consumer and Worker Protection.
When applying, a facility must report any past violations related to:
- Workplace safety
- Road or traffic safety
- Environmental rules
- Deceptive business practices
- Worker-protection laws
The license would cost $500 per year and will be valid for two years.
2. Workers Cannot Be Hired Through Staffing Agencies
A major change under the proposed law is the prohibition on hiring warehouse workers through staffing agencies or subcontractors for core operational roles. If a business ends a contract with a staffing agency, it must offer jobs to the affected workers before hiring additional personnel.
3. Mandatory Training for All Warehouse Employees
The proposed law will require that all warehouse workers receive “last-mile facility training” within their first 92 days of employment and once a year thereafter.
The training will cover, among other topics:
- Worker rights
- Employer responsibilities
- Safe driving and delivery practices
- Safety around new technology, including automated or robotic vehicles
What This Means for Businesses
- Staffing must shift to direct hiring: if a warehouse relies on contractors, the business will need to adjust its staffing practices
- Increased compliance obligations: licenses, disclosures and required training mean new administrative tasks
- Elevated safety expectation: annual training will become a key part of compliance.
Bond will continue to monitor relevant updates regarding this legislation and provide additional updates as appropriate. If you have any questions or would like any additional information regarding this legislation, employer updates or other legal developments, please contact Sam Dobre, Jason Kaufman or any attorney in Bond’s labor and employment practice.
*Special thanks to associate trainee Timothy Bouffard for his assistance in the preparation of this memo. Timothy is not yet admitted to practice law.