Instacart sued New York City on Tuesday to block enforcement of five laws affecting the grocery delivery company, including rules governing minimum pay for app-based workers and disclosures to customers about tipping.
According to a complaint filed in Manhattan federal court, Congress forbade state and local governments from regulating prices and services for customers who use platforms such as Instacart, while New York’s state legislature “has long taken charge” of minimum pay standards.
Instacart, based in San Francisco, also said the US Constitution prevents states and cities from discriminating against commerce by out-of-state companies.
The laws will take effect on Jan. 26, and, absent an injunction, would harm consumers and grocers by raising delivery costs, Instacart said.
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