New York City's potentially groundbreaking Delivery Protection Act (Intro 518), which would fundamentally alter the relationship between Amazon and its Direct Service Providers (DSPs), has gone quiet for the summer — but signs of possible shifts in its most stringent provisions emerged after an April public hearing, according to FreightWaves.
The legislation, officially known as the Delivery Protection Act and labeled as Intro 518 in the New York City Council, has shown no formal action since the April hearing, FreightWaves reported. The Council's dedicated page for the bill remains static. However, sources close to the process told FreightWaves that summer is 'amendment season,' during which changes to the original bill are being discussed and drafted — though none have yet appeared in the published text.
Key Provisions and Current Status
The bill's core regulations include requiring all delivery companies in New York City to obtain a license, and prohibiting subcontracting out deliveries that constitute 'core services.' The legislation states: 'All workers providing core warehouse services at last-mile facilities in the city shall be directly employed by the facility operator.' Additionally, workers displaced by the transfer of core services from an independent contractor — such as an Amazon DSP — to the facility operator must be hired by that operator. Licenses can be revoked if a city agency finds violations of labor standards.
| Metric | Value |
|---|---|
| Current co-sponsors (52-member Council) | 32 |
| Co-sponsors of predecessor bill (died end of 2025) | 41 |
| Last action | April public hearing |
| Next expected action | Possibly fall 2026 |
Kendra Hems, president of the Trucking Association of New York, told FreightWaves: 'Things tend to get quiet in the summer, particularly as the Council and the mayor work through the budget. At this point, we’re anticipating we will not see too much more until maybe sometime in the fall.' She characterized the bill's provisions as 'gross overreach.'
Potential Amendments and Stakeholder Positions
Backers of the bill, originally sponsored by Council member Tiffany Caban, are reportedly open to some changes. One possible modification under discussion would involve Amazon and its DSPs becoming joint employers of drivers and other employees. However, Amazon has fought hard against joint employer designations and recently appeared headed for a significant victory in that battle with the Teamsters in California, according to the FreightWaves report.
Another option that might satisfy Council backers would allow DSPs to become more independent — with less control from Amazon — a loaded term in defining true independent contractor status. Sources close to the DSP ecosystem suggested Amazon has considered moving away from its tight control model, as it frequently battles over control in courts.
James Parrott, a labor economist at the Center for New York City Affairs at The New School, expressed skepticism that significant changes could still meet the bill's goals. 'Parrott, who is not connected to the bill's drafting, questioned whether any amendment could preserve the protections for workers while accommodating industry demands,' the article noted. (Note: Paraphrased — not a direct quote.)
Operational Implications for Last-Mile Delivery
If enacted in its current form, the Delivery Protection Act would directly disrupt Amazon's last-mile delivery model in New York City. Amazon relies heavily on approximately 100 DSPs nationally (specific NYC number not given) that hire drivers as independent contractors. The prohibition on subcontracting core services and the requirement to directly employ workers would force Amazon to bring those drivers onto its payroll, increasing labor costs and operational complexity. For other last-mile operators in NYC, the licensing requirement and employment mandates could similarly reshape their business models.
Logistics managers and 3PLs operating in the city should monitor the bill's progress closely. The 'amendment season' during summer 2026 could produce modifications that either soften or harden the final version. An Amazon spokesman did not respond to FreightWaves' request for comment by publication time.
Watch List
- Fall 2026 Council session: potential reintroduction of floor debate or vote on Intro 518.
- Publication of any amendments during 'amendment season' that would alter subcontracting ban or joint employer language.
- Amazon's response: possible legal challenge or operational changes to DSP model in NYC ahead of bill's passage.
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