Amazon Threatens NYC Exit Over Delivery Protection Act

The company may close 15 city warehouses if required to hire 5,000 independent delivery contractors directly.

Updated on Oct. 16, 2026 in Employment

Isometric editorial illustration of a generic warehouse building and a parked delivery truck, representing the economic conflict over city operations. — Amazon has warned that it will relocate operations from New York City if the Delivery Protection Act forces the direct employment of thousands of contractors. AI Illustration. Upload story photo >

Live Poll

Should city governments mandate direct employment for delivery workers even if it risks local business closures?

Amazon has warned that it will move operations away from New York City if the proposed Delivery Protection Act becomes law. The legislation would force the retail giant to convert 5,000 independent delivery contractor roles into direct employee positions.

Why it matters

The company maintains that the mandated shift in employment status is unsustainable, potentially threatening 2,000 local warehouse jobs. Proponents argue the bill will protect worker rights, while Amazon warns of a full relocation of delivery operations to New Jersey.

A study estimates the proposed act would increase costs for New Yorkers by $664 annually, or roughly $5.20 per package. The legislation currently has approximately 34 City Council cosigners.

The players

Amazon

Amazon is a global multinational technology company focused on e-commerce, cloud computing, and digital streaming.

Tiffany Cabán

Tiffany Cabán is a New York City Council Member who serves as a primary sponsor of the Delivery Protection Act.

The details

Amazon operates 15 delivery warehouses across the city and currently employs 12,000 hourly workers. If the bill passes, the company indicates it will move these operations to facilities along the New Jersey Turnpike, while approximately 40 independent delivery companies could see their local operations close entirely.

In 2022, employees at the JFK8 fulfillment center in Staten Island voted to unionize.
During 2025, Amazon closed seven warehouses located in Quebec.
In March 2025, 1,900 warehouse workers and 2,800 contractors in Quebec lost their jobs.
In 2026, Council Member Cabán reintroduced the Delivery Protection Act.

Macro View

This dispute over the Delivery Protection Act reflects historical tensions regarding the classification of independent contractors in the gig economy. The situation mirrors past labor disputes, such as the 2025 Quebec warehouse closures, where corporate infrastructure shifts followed legislative and union pressures.

If the legislation passes and Amazon follows through with moving its 15 delivery warehouses, residents could see an estimated cost increase of $664 annually on their deliveries. The potential displacement of 2,000 local warehouse workers could also impact regional employment levels.

The takeaway

The proposed legislation highlights the friction between city-level labor mandates and the logistical flexibility of major retailers. Residents should monitor City Council proceedings to see how lawmakers balance these protections against the projected increase in household delivery costs.