Proposed Delivery Law Could Cost NYC Households $664

The Delivery Protection Act may lead to higher costs for residents if Amazon closes its 15 city warehouses.

Updated on Oct. 16, 2026 in Employment

Bold flat-color editorial illustration of stacked shipping boxes, representing the potential economic costs of new delivery legislation. — A proposed New York City bill requiring Amazon to hire thousands of delivery contractors could increase annual household costs by $664. AI Illustration. Upload story photo >

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Should city governments mandate direct employment for delivery workers even if it risks local business closures?

Amazon has warned it could close its 15 New York City delivery warehouses and cut local jobs if the proposed Delivery Protection Act becomes law. The legislation would mandate that the company directly hire 5,000 independent delivery contractors.

Why it matters

The bill's passage could shift local logistics costs, with projections indicating a $664 annual cost increase per household or $5.20 per package for New Yorkers. This standoff highlights the potential economic trade-offs between workforce regulation and local service accessibility.

A new study estimates the Delivery Protection Act could cost households $664 annually, or $5.20 per package, by forcing the direct hiring of 5,000 delivery workers. Amazon currently employs 12,000 hourly workers across 15 city warehouses that the company suggests may close.

The players

Amazon

A global retail and logistics company that employs 12,000 hourly workers in New York City and currently manages delivery operations through contractors.

Council Member Cabán

A city legislator who reintroduced the Delivery Protection Act to mandate direct employment for delivery workers.

The details

The Delivery Protection Act requires Amazon to transition from utilizing independent delivery firms to directly employing 5,000 contractors. Amazon contends that this shift would force it to shutter its 15 city-based distribution centers to reorganize operations along the New Jersey Turnpike. If implemented, this move is projected to result in the termination of 2,000 local warehouse workers as the firm consolidates its regional network outside city limits.

2022: JFK8 center employees voted to unionize.
2025: Amazon closed seven warehouses in Quebec during a labor dispute.
March 2025: 1,900 warehouse workers and 2,800 contractors lost jobs in a separate regional incident.
2026: Council Member Cabán reintroduced the Delivery Protection Act.

Money Landscape

The Delivery Protection Act represents a significant attempt to alter the labor structure for e-commerce logistics within the city. This proposal follows a broader trend of increased scrutiny regarding the employment status of gig and contract workers in urban delivery markets.

Households should prepare for the possibility of higher delivery costs should this legislation advance toward a vote. Review your household budget to account for a potential $664 increase in annual delivery-related expenditures if the current proposal is adopted.

The takeaway

The proposed shift toward direct employment for delivery contractors could substantially alter both delivery costs and local job availability. Residents should monitor the City Council schedule for upcoming hearings regarding the bill to understand how their specific neighborhood delivery access may change.