New York City's tipping law may increase tips for Uber Eats and DoorDash workers.

Starting Jan. 26, New York City will require delivery apps to show a tipping option at checkout with a 10% default gratuity, and a federal judge recently rejected Uber and DoorDash's bid to block the law.

New York City will require food delivery apps to display a tipping option at checkout when the law takes effect on Jan. 26. The rule also sets a default gratuity of 10% at checkout. Companies moved the tipping prompt to after delivery in recent years, and city officials say restoring it at checkout could raise tips for delivery workers. The law follows city efforts to enforce worker protections under the Department of Consumer and Worker Protection. Key details: - The law requires apps, including DoorDash and Uber Eats, to show a tip option at payment and to set the default gratuity to 10%. - The city's DCWP estimated delivery workers missed about $550 million in tips since December 2023 after companies moved tip prompts to post-delivery. - DoorDash and Uber sued to block the law; a federal judge rejected the companies' suit shortly before the law took effect. - DoorDash said allowing the law to take effect could lead to fewer orders and fewer deliveries for city couriers; an Uber spokesperson did not comment. - The DCWP said it will monitor apps for compliance and pursue legal action if needed. - Workers and advocates said tips are a major part of earnings and help cover operating costs like e-bikes; some workers say apps that kept checkout prompts have produced higher gratuities. Summary: The law is intended to return the tipping option to the checkout experience and set a 10% default, which city officials say could raise tips for delivery workers. Companies argued the rule would reduce orders and customer experience, and a judge recently rejected their challenge; the DCWP plans to monitor compliance as the rule takes effect.