Foundation for Economic Education

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Mamdani’s Delivery Protection Act promises to protect delivery workers, but it could end up closing doors for them.

Comment “Delivery” and we’ll send you an article that explores this further. If the law forces flexible contracting relationships into more expensive direct-employment arrangements, hiring becomes less profitable for some positions, especially for intermittent workers, young workers, or those whose productivity is closest to the new all-in cost of employment. Companies will not magically absorb those costs. They can hire fewer hours, reduce delivery zones, limit delivery windows, raise prices, automate more processes, or consolidate operations in fewer hands. Compliance costs also tend to hit smaller contractors harder than large firms that can internalize the entire operation. A policy designed to protect workers can reduce competition, accelerate automation, and make service more expensive for consumers. Economics does not respond to intentions. It responds to incentives, costs, and margins.
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