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Mamdani’s early moves as mayor clash with affordability pledge: ‘Ripple effects are significant’

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Mamdani’s early moves as mayor clash with affordability pledge: ‘Ripple effects are significant’

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New York City Mayor Zohran Mamdani ran on a message of making the Big Apple more affordable for everyday Americans, but some of his actions in the first few weeks of his tenure have served to undercut that reality.

In the early days of his time as mayor, Mamdani has already shown a penchant for vehemently defending low-wage, unskilled delivery-app workers in a manner that industry executives and business experts think will hit consumers’ pocketbooks. He sued a delivery app startup earlier this month for allegedly violating the city’s worker-rights laws, and warned the broader range of delivery app companies operating in the city to abide by ramped up worker rights being imposed at the end of the month, or else.

At a press conference announcing the lawsuit and accompanying demand letters issued to delivery app companies warning them to follow the updated worker protections, Mamdani also accused the delivery-app startup, MotoClick, of stealing workers’ tips. Among the reforms Mamdani has signaled he plans to vigorously enforce is a mandated tipping framework that estimates show could push more than half-a-billion in additional costs on consumers annually. 

The updated protections will also add more delivery-app companies, such as those that deliver groceries, to the list that must follow the delivery-app worker rights laws, including a mandated minimum wage higher than what some emergency medical services (EMS) personnel in the city make.

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‘ZOHRANOMICS’: NYC MAYOR ZOHRAN MAMDANI’S SOCIALIST MATH DOESN’T ADD UP 

Zesty is now in beta in San Francisco and New York as DoorDash tests and refines its personalized matching experience. (iStock)

“We know affordability is not just about the cost of goods — it’s about the dignity of work,” Mamdani’s Commissioner of the Department of Consumer and Worker Protection (DCWP) Sam Levine told companies including DoorDash, GrubHub and Uber. “Today’s lawsuit against Motoclick is not just an action against one company, it’s a warning to every app-based company from this Administration. You cannot treat workers like they are expendable and get away with it. We will seek full back pay and damages. We will seek full accountability.”

Mamdani pointed to a recent report put out by Levine, which showed disobeying city mandates going into effect later this month, requiring apps to give the opportunity for customers to tip before or at the same time that an order has been placed, significantly impacts the amount of incoming tip revenue. Levine’s report that Mamdani touted estimates alternative tipping frameworks, such as only allowing tips upon completion of a delivery, have altered tipping revenue by an estimated $550 million per year.

Mamdani also stood by in tacit agreement during the press conference as delivery-app worker advocates called for an increase to their already mandated minimum wage they have that is approximately $4.50 higher for delivery-app drivers than the city’s base minimum wage of $17 per hour. The workers said they wanted a mandate that they get paid $35 per hour, to which Mamdani replied: “closed mouths don’t get fed.”

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Mamdani campaigned on raising the base minimum wage to $30 per hour for all New Yorkers by 2030.

New York City Mayor Zohran Mamdani at a press conference defending worker rights for delivery-app drivers on Thursday, Jan. 15, 2026. (Michael Nagle/Bloomberg via Getty Images)

Meanwhile, his eager enforcement to protect delivery-app drivers will include making sure a wider breadth of delivery-app companies, such as those who deliver groceries like InstaCart and Shipt, abide by New York City’s extended minimum wage laws for their workers – plus the other mandates related to the tipping structure and more.

DCWP has indicated plans to set a minimum pay rate for all delivery apps by early 2027.

HOURS AFTER TAKING OFFICE, NYC MAYOR MAMDANI TARGETS LANDLORDS, MOVES TO INTERVENE IN PRIVATE BANKRUPTCY CASE    

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“The challenges facing delivery workers, small businesses, and consumers are real, and deeply interconnected. That’s why this issue cannot be reduced to a single policy lever or viewed in isolation,” a spokesperson for the Bronx Chamber of Commerce told Fox News Digital. “Small businesses across the Bronx and throughout New York City are already under extraordinary pressure. When additional costs are layered on without a full economic analysis, those costs are predictably passed down to consumers or absorbed through reduced hours, reduced staffing, or closures. When businesses close, communities lose jobs, services, and economic anchors, and the ripple effects are significant.”

The Chamber of Commerce spokesperson added that Mamdani has an opportunity “to lead by tackling affordability in a holistic way,” which they said would require “comprehensive cost analysis and coordinated solutions that support workers while ensuring the small business ecosystem and consumer affordability are not unintentionally harmed.”

Signage reading ‘Days of a New Era’ is juxtaposed behind New York City Mayor Zohran Mamdani during a press conference he attended about reining in ‘junk fees.’ (Adam Gray/Bloomberg via Getty Images)

When reached for comment about the discrepancy between Mamdani’s message of making New York City more affordable for everyone, versus his push to protect delivery-app worker rights that could impact consumer pricing, a New York City Hall spokesperson argued that “the insinuation that putting more money in the pockets of delivery workers undercuts affordability is absurd.”

“Delivery Workers are important members of our city’s economy, and deserve to be paid fairly – anything less is unacceptable,” the spokesperson added. “As Mayor Mamdani continues to stand up for everyday New Yorkers and actualize his ambitious agenda to make New York City truly livable for families. Affordability has been, and will continue to be, a guiding light.”

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But DoorDash’s head of public policy for North America, John Horton, said that ensuring delivery-app workers “earn double what many first responders in the city make” is not a policy solution they believe will make New York City more affordable. Currently, a local fire technician and emergency medical services union in the city is in the midst of a public awareness campaign to raise their wages because they make less than delivery-app drivers at $18.94 per hour.

Delivery-app workers in New York City must be paid $21.44 per hour according to local worker protection mandates.  (iStock)

“A thriving New York will take a partnership between elected officials, the business community and workers to ensure we are all working in the best interests of New Yorkers in the midst of the city’s affordability crisis,” Horton added. 

Fox News Digital followed up with Mamdani’s campaign to inquire about the complaint that EMS and some firemen in the city are making less than delivery-app workers, but did not receive a response in time for publication.

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Crews Drape Tarp Over White House in Latest Trump Restoration

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Construction workers unfurled a large printed tarp to cover scaffolding installed at the White House’s front entrance. Doug Burgum, the interior secretary, said President Trump had ordered the repairs after noticing damage to columns.

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WATCH: Trump’s Energy chief reveals what escalating Iran tensions could mean for gas prices

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WATCH: Trump’s Energy chief reveals what escalating Iran tensions could mean for gas prices

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Energy Secretary Chris Wright is telling Americans not to be concerned about the possibility of another surge of sharp increases in gasoline prices as tensions with Iran have started to escalate once again.

Asked whether Americans should worry about higher prices at the pump and how the Trump administration is preparing to keep the economy stable if the conflict continues to worsen, Wright told Fox News Digital: “It has not been any good behavior from Iran that’s allowed oil to flow. It’s been the United States military.”

“That’s not changing,” he assured, speaking from the Great American State Fair on the National Mall this week.

US CLAWS BACK KEY CONCESSION TO IRAN AFTER FRESH ATTACKS ON COMMERCIAL SHIPS IN STRAIT OF HORMUZ

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(Mario Tama/Getty Images) (Mario Tama/Getty Images)

With Iran striking three commercial vessels transiting the Strait of Hormuz on Monday and Tuesday, Wright doubled down in urging citizens to not credit Iran for the U.S. military’s work to ensure oil shipments continue flowing through the strait.

“Look, the U.S. Military has been the key asset here,” he said. “They have assured the flow of oil and gas through the Strait of Hormuz throughout. Not at the beginning of this conflict, but through the last six weeks.”

Wright said the administration is closely monitoring global oil supplies as the tentative ceasefire with Iran seemingly came to come to a halt, with President Donald Trump telling Secretary-General Mark Rutte the call for peace with Iran is “over” at the NATO Summit in Turkey on Wednesday.

But, he pointed to the continued shipping through the Strait as evidence that markets should remain stable.

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TRUMP SAYS IRAN CEASEFIRE IS ‘OVER’ AFTER IRANIAN ATTACKS TRIGGER MASSIVE US RESPONSE

President Donald Trump speaks at the White House on Tuesday, April 22. (AP/Alex Brandon)

“We’re of course constantly watching the supply of oil, the supply of refined products and what’s going on there,” Wright said. “And I think still all positive trends.”

Beyond geopolitical concerns, Wright also praised the new chain of discounted gas stations across Pennsylvania and New Jersey, Freedom Fuel, which promises customers prices below the national average.

The Trump administration, though not involved with the network, has heavily endorsed the new chain and its 25 locations.

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“We love it,” Wright said when asked about Freedom Fuel. “I mean, look, any mechanism we can to lower energy costs for Americans of all kinds, we’re all in on.”

“With Freedom Fuels, they’re just lowering it down to their wholesale price of gasoline,” Wright said. “So they’re not making any money selling gasoline, but they’ve got convenience stores. That’s how most gas stations make money.”

NEWSOM UNDER FIRE AS CALIFORNIA GAS TAX HIKE SENDS PUMP PRICES EVEN HIGHER

Gasoline costs are a known concern for many Americans, and amid surging prices there has been a considerable increase in those opting to purchase electric vehicles to save money long-term at the pump — with Tesla dominating the market for these types of models.

Wright argued one of the benefits to living in America is having the option to choose what type of vehicle you drive.

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“We just want people to buy what they would prefer,” he told Fox News Digital when asked his thoughts on increasing calls for support of the electrification of cars. “Consumer choice — you wanna buy an electric car, you wanna buy a gas powered car, diesel powered car, buy a big truck. That’s the choice.”

“That’s why you live in America. You get the choice of all those.”

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Black mold and $1 wages: Settlement forces immigrant detention centers to protect workers

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Black mold and  wages: Settlement forces immigrant detention centers to protect workers

In 2023, California regulators levied more than $100,000 in fines against the private operator of a federal immigration facility, kicking off a three-year battle over whether detainees who do work at the facilities should be considered employees.

The question went beyond semantics: If considered employees, the detainees would be subject to state worker protection laws.

A legal settlement announced this week now affirms that private immigrant detention facilities are subject to California’s workplace safety and health requirements.

“Every worker deserves a safe and healthy workplace and should be able to report workplace hazards without fear of retaliation,” said Denisse Gómez, spokesperson for the California Division of Occupational Safety and Health or Cal/OSHA.

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“Individuals who perform work in these facilities are entitled to workplace safety protections, and this settlement reinforces Cal/OSHA’s commitment to enforcing those protections and safeguarding vulnerable workers,” she added.

Under the settlement between California and the GEO Group, a Florida-based private prison company, the company recently withdrew its legal challenges and agreed to pay more than $100,000 in the fines.

The GEO Group did not respond to requests for comment.

Back in 2023, Cal/OSHA issued $104,510 in fines against the GEO Group. The agency had found six violations of state code by the company after detainees complained about a lack of protective equipment and proper training while cleaning the facility for $1 per day.

Detainees alleged they routinely wiped black mold off shower walls at the facility, saw black dust spew from air vents and used cleaning solutions that lacked instructions during the COVID-19 pandemic.

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The biggest fine levied against the GEO Group was for failure to establish and maintain “effective written procedures to reduce employee risk of exposure to aerosol transmissible disease.”

Advocates viewed Cal/OSHA’S recognition of the detainees as workers as a victory that could pave the way for future labor rights fights at other detention centers in the state.

But the GEO Group appealed, arguing that detainees participating in ICE’s voluntary work program make their own schedules and aren’t employees, so hazard exposure couldn’t be “as a result of assigned duties,” as California law states. Plus, the company argued, there wasn’t enough evidence that detainees were exposed to any hazard.

Early last year, the state’s Occupational Safety and Health Appeals Board rejected the GEO Group’s argument and found that detainees should be considered “affected employees.”

The GEO Group sued, but three days before a California Superior Court hearing in May, the company and Cal/OSHA reached the settlement.

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Along with paying the fines, the GEO Group agreed to draft plans for avoiding aerosol transmissions at 12 secure and reentry facilities in California, including five detention centers that hold immigrants.

“GEO ensures detainees are afforded the necessary tools, equipment, and personal protective equipment … to safely and effectively perform any necessary tasks,” the settlement states.

Gómez said the settlement also leaves intact the appeals board’s ruling that civil immigration detainees who participate in work programs can participate in proceedings anonymously, “acknowledging the potential for retaliation when individuals raise workplace safety concerns.”

But the question of whether detainees are employees and deserve certain protections isn’t entirely resolved — at least not for the federal government.

Last month, U.S. Immigration and Customs Enforcement released new standards for detention facilities across the country. The revised guidelines “emphasize that detainee volunteers participating in the voluntary work program are not considered facility and/or government employees” and thus not entitled to labor regulations.

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Attorney Mariel Villarreal said the timing of the new detention standards made her question whether the GEO Group had asked ICE to specify in its standards that detainees are not workers in response to its battle with Cal/OSHA.

“To me, it’s a reaction to this very settlement,” she said. Villarreal works for the California Collaborative for Immigrant Justice, which filed the original complaint on behalf of detainees who said they worked in unsafe conditions.

Villarreal pointed to a Washington Post report that GEO Group executives privately asked ICE to specify that detainees are not employees of the facilities where they work. Two top Trump administration officials, border czar Tom Homan and acting ICE director David Venturella, previously worked for the GEO Group.

New versions of ICE detention standards take effect as contracts are established or modified, so this year’s rules won’t immediately apply to every facility.

An ICE spokesperson did not comment about the settlement. The spokesperson, who did not provide their name in an emailed statement Wednesday, said the agency has begun transitioning detention facilities to meet the 2026 standards, “building on its longstanding commitment to safe, secure, and professional detention operations.”

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“ICE has consistently implemented many of these best practices independently, reinforcing its role as the leader in detention operations,” the spokesperson added.

The GEO Group and other immigrant detention center operators have faced other legal battles over workers’ rights, including lawsuits in Washington, Colorado and California over the $1-per-day payment.

Villarreal said she’s confident that the Cal/OSHA settlement would continue to hold even if California facilities incorporated the new standards. But she said she believes the statements are an attempt by the GEO Group to “sidestep responsibility” and avoid the possibility of being fined under similar circumstances in other states.

“These statements in the new standards are a way for them to try and preserve profits as much as possible,” she said. “GEO and ICE are so intertwined at this point that they have the same motives.”

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