New York City Mayor Zohran Mamdani campaigned on policies designed to protect and increase benefits for low-income workers, and some of the Mayor’s core priorities relate to income inequality and affordability concerns for City residents. Recently, the Mayor has taken steps to empower employees and has sought to send a message to the business community that the City will endeavor to protect workers’ rights. The Mayor’s actions are part of a broader effort to help workers receive required protections.
In July 2026, the Mayor announced that the City had negotiated more than $2 million in settlements with employers for alleged violations of New York City’s Fair Workweek Law and Paid Safe and Sick Leave requirements. On Sept. 22, 2026, the Mayor also announced that the City negotiated a landmark settlement with DoorDash worth approximately $131.5 million to resolve allegations of underpayment to delivery workers, one of the largest recoveries in City history for employees.
Potential Criminal Prosecution of Wage Theft
In August 2026, the Mayor announced a formal partnership between the New York City Department of Consumer and Worker Protection (DCWP) and the Manhattan District Attorney’s Office. This initiative treats wage theft as an economic crime rather than as a labor-law violation.
The agencies will coordinate employer investigations; the DCWP will focus on obtaining restitution for employees, while the Manhattan DA’s Office will evaluate cases for criminal charges. The agencies signed a memorandum of understanding to share information, investigative strategies, and confidential data (where permitted) to pursue wage theft through both civil and criminal enforcement channels.
This development is noteworthy because criminal wage-theft prosecutions have historically been less common than individual and class/collective civil actions filed by employees under the federal Fair Labor Standards Act and the New York Labor Law. The Administration has indicated that it may refer more cases for criminal prosecution, particularly those involving willful and/or systemic nonpayment of wages.
Executive Order ‘Cracking Down on Worker Abuse and Establishing the Mayor’s Office of Worker Power’
Just ahead of Labor Day, on Sept. 3, 2026, the Mayor issued an Executive Order entitled “CRACKING DOWN ON WORKER ABUSE AND ESTABLISHING THE MAYOR'S OFFICE OF WORKER POWER.” The Order took effect immediately upon issuance.
The Executive Order acknowledged that, “the working people of New York City who build, clean, move, care for, and define our city should enjoy the promise of a just day’s pay for a hard day’s work and job security, but too many are forced to cobble together unstable, precarious work to survive, without job stability, adequate work hours, or predictable incomes.” It also stated that, “the working people of New York City should receive the highest protections to which they are entitled, but too many endure wage theft and other violations of their basic rights on the job.”
The Order further asserted that, “law-abiding employers should not have to compete against those who cut corners by cheating their workers and violating worker protection laws.” This statement may suggest that the Order is designed to create a more level playing field for employers.
The Order indicates that City agencies will coordinate to advance its goals. Specifically, “all City agencies should have ready access to information about worker protection violations uncovered by other agencies, and government cooperation promotes efficiency, builds public trust, and deters non-compliance.”
Cracking Down on Worker Abuse
Under the Executive Order, the Deputy Mayor for Economic Justice shall establish enforcement principles for agencies responsible for enforcing the City’s worker protection laws.
“Such principles shall include the prioritization of monitoring, investigating, and taking enforcement action against companies that deny workers workplace protections. Where warranted, such worker protection investigations and enforcement actions shall include all workers affected by an identified unlawful practice and shall be directed towards addressing all violations found to exist companywide,” the City stipulated in the Order. “Such agencies shall, to the extent permitted by law, seek monetary relief for all workers who experience violations without regard to whether any such worker filed an individual complaint, and take all appropriate actions to enforce subpoenas issued in relation to enforcement actions.”
Proactive Investigations to Identify and Stop Violations
The Executive Order provides that the DCWP, the Taxi and Limousine Commission (TLC), and the Commission on Human Rights (CCHR), in coordination with the Deputy Mayor for Economic Justice, will develop directed investigation procedures for investigating workplace violations and other predatory practices when no complaint has been filed. It specifies that such procedures shall prioritize the investigation of employers and entities with a history of labor violations or other indicators of poor compliance, with a particular focus on employers who have large numbers of workers with low wages. The procedures will utilize all investigative tools available, including subpoenas, directives, and summonses.
Protecting Immigrant Workers from Illegal Tactics
The Executive Order specifically supports immigrant workers’ rights. In this regard, it states that City agencies with authority to enforce laws protecting workers’ rights are required to make every effort to confirm that workers seeking to learn about their rights or to report violations are not discriminated against, harassed, or retaliated against based on immigration status, race, ethnicity, nationality, or on the basis of any other protected category. According to the Order, City agencies will enforce anti-retaliation measures and are directed to keep complainants’ identities confidential to the extent possible.
Agency Coordination and Information Sharing
The Executive Order directs the Deputy Mayor for Economic Justice to oversee a citywide initiative to broaden collaboration among enforcement agencies to support maximum impact in protecting workers’ rights, including using all powers available from each agency to confirm that violations are corrected and wages and penalties are paid. DCWP, CCHR, TLC, and other agencies identified by the Deputy Mayor for Economic Justice are directed to share information about violations of federal, state, and local worker protections to assist in fulfilling the goals of the Order.
The Mayor’s Office of Worker Power
The Executive Order creates a Mayor’s Office of Worker Power, which shall be supervised and coordinated by the Deputy Mayor for Economic Justice. The Office is designed to support the legal rights of workers to organize, ensure opportunities for worker input in the development of City policies related to their rights, and evaluate ways the City might better advance workers’ ability to exercise their rights and report violations. The Mayor will appoint an executive director, who will lead the Office and serve at his pleasure.
Key Takeaways for Employers
Given the Administration’s actions surrounding workers’ rights, New York City employers may see:
- Increased enforcement of existing wage-and-hour laws, including scheduling and paid leave obligations.
- Greater penalties for non-compliance, including the potential for criminal prosecution.
- Stronger political and institutional support for union organizing campaigns.
- Heightened scrutiny of companies that employ low-wage workers, including those in the warehouse, logistics, hospitality, and retail industries — and in the gig-economy sector.
- Governmental reliance on executive actions and agency enforcement, even where major legislative changes have not yet been enacted.
Potential future initiatives may include greater scrutiny of pay transparency, wage equity and worker classification, as well as continued efforts to obtain an increase in the minimum wage.