EXCLUSIVE: National Urban League backs NYC delivery workers, pushes back against legislation threatening Black businesses

“We believe that the legislation…will have a negative effect and cause thousands of jobs to be lost,” CEO Morial wrote in an open letter to the New York City Council.

The National Urban League is backing the New York Delivers Coalition in its fight against proposed legislation that could eliminate thousands of jobs and threaten Black-owned businesses.

In an open letter to the New York City Council, CEO Marc Morial argued that the proposed Delivery Protection Act may deepen economic disparities for workers of color, particularly as Black workers face ongoing job-market challenges, according to a news release.

“We believe that the legislation…will have a negative effect and cause thousands of jobs to be lost, increasing the racial wealth gap and raising costs for consumers at every turn,” Morial wrote.

The legislation, known as Intro 518, would set licensing requirements for certain warehouses and storage facilities and require facility operators to directly employ workers who perform core delivery and warehouse services, with exceptions. It would also restrict third-party contractors from providing those services.

The National Urban League’s opposition adds to concerns raised by delivery business owners, who say the proposed restrictions could damage the business model that allows them to operate and employ workers across the city.

In September, the New York Delivers Coalition released an analysis by consulting firm AKRF estimating that the proposed legislation could put 3,000 to 5,000 jobs at risk in a low-impact scenario and more than 10,000 in a high-impact scenario. The September report examined how delivery companies could respond to the measure, including by relocating or consolidating their operations, as TheGrio previously reported.

John Neill, senior vice president at AKRF, said the estimated figures do not mean the jobs would necessarily disappear. However, he warned that changes to delivery operations could disrupt employment opportunities and make jobs harder to access for workers who rely on public transportation.

The National Urban League considers the potential impact on workers of color a major concern. According to figures cited in the organization’s letter, an estimated 80% of affected delivery workers are minorities, while 25% of delivery business owners are Black.

Morial warned that the legislation could expand the economic gaps for Black Americans, particularly as unemployment continues to rise among Black workers and Black women.

For Black entrepreneurs who own delivery companies, the stakes extend beyond individual contracts. Losing business from major delivery companies could threaten owners’ and employees’ livelihoods while reducing opportunities for minority-led businesses to grow.

New York City Mayor Zohran Mamdani has backed the Delivery Protection Act, arguing that it would strengthen worker protections and hold major companies like Amazon accountable for working conditions. The New York Delivers Coalition opposes the legislation, warning that restricting third-party delivery contracts could put thousands of jobs and small businesses at risk, according to the news release and the NYC Consumer and Worker Protection.

The National Urban League urges City Council members to consider those consequences as they weigh the proposal.

The organization calls on lawmakers to “stand up to support Black entrepreneurs,” arguing the measure could harm economic opportunities for the very communities that need them.