A New York City bill targeting Amazon's contractor model could force direct hiring of drivers, raising costs and liability. The firing of a pro-bill driver adds pressure. Watch for the City Council vote.
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New York City lawmakers are pushing a bill that would force Amazon to directly hire its delivery drivers instead of relying on subcontractors. The Delivery Protection Act, introduced by Councilmember Tiffany Cabán, has 30 co-sponsors and support from the mayor's administration. If passed, it could upend Amazon's logistics structure in one of its largest markets.
Amazon currently uses more than 40 "delivery service partners" in New York. Those contractors employ drivers who wear Amazon uniforms, drive Amazon-branded vans, and follow Amazon's route directives – but Amazon insists they are not its employees. Critics argue the arrangement shields the company from wage theft claims, accident liability, and union organizing.
The bill gained fresh attention after a Queens driver, Esly Paredes, was fired in late May. Paredes had posted TikTok videos supporting the legislation. Her termination letter cited violations of the contractor's social-media and solicitation policies. The Teamsters filed an unfair-labor-practice complaint with the National Labor Relations Board, arguing the firing interfered with protected concerted activity.
Amazon spokesperson Leigh Anne Gullett said the company had "no involvement in any personnel decision involving Ms. Paredes." Vincent Satriano, owner of Paredes's former employer Satriano Logistics, said the firing followed "repeated violations" of company policy.
Paredes's case highlights the legal vulnerability Amazon faces. In 2024, NLRB regional directors in Los Angeles and Atlanta ruled that Amazon is a joint employer of its subcontractor drivers, making it liable for anti-union activity. Those rulings lost momentum after the second Trump administration appointed a former Amazon outside attorney to lead the NLRB. A Bloomberg Businessweek investigation this month documented how Amazon controls its contractors: forcing dispatches in hazardous weather, dictating which vendors they use, and even mandating personal-hygiene standards.
Amazon and business groups warn that the NYC bill would crush small contractors and eliminate thousands of jobs. The company suggested it might pull operations out of New York entirely. Multiple drivers told The City Reporter that their bosses paid them to attend a rally against the bill – a sign of how aggressively the company is lobbying.
The City Council has not yet scheduled a full vote. Paredes, now jobless and dipping into savings, said she plans to keep posting about the bill. "They're terrified because if we know our rights, we will defend ourselves," she said in Spanish.
For traders and investors, the key risk is regulatory cost creep. Amazon's delivery network is a core competitive advantage. A direct-hire mandate in New York could raise labor costs, invite similar legislation in other cities, and weaken the contractor shield that limits liability. The watchpoint is the City Council calendar: a vote before year-end would be a negative catalyst. A stalled bill or a veto-proof compromise would reduce near-term risk.
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