Amazon Warns of NYC Warehouse Closures Over New Labor Law
New York City businesses may face supply chain disruptions as Amazon threatens to exit if the Delivery Protection Act passes.
Updated on Oct. 16, 2026 in Employment
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Amazon has warned that it will relocate operations and reduce its New York City workforce if the proposed Delivery Protection Act becomes law. The legislation would mandate the direct hiring of 5,000 independent delivery contractors, a shift that would impact local delivery operations.
Why it matters
The dispute centers on labor costs and operational autonomy, as Amazon opposes legislation requiring the direct employment of workers currently managed by 40 independent contractors. If passed, the bill could disrupt the supply chain for city businesses by forcing the closure of 15 local warehouses.
A study estimates the Delivery Protection Act would increase costs by $664 per household annually, or $5.20 per package. The bill affects 5,000 delivery workers across 40 independent companies that currently support Amazon's 15 city-based delivery warehouses.
The players
Amazon
A global e-commerce and cloud computing corporation that operates an extensive last-mile delivery network.
Tiffany Cabán
A New York City Council Member who reintroduced the Delivery Protection Act in 2026.
The details
The Delivery Protection Act requires Amazon to transition 5,000 delivery workers from independent contractors to direct employees. Amazon contends this mandate would make its city-based distribution model untenable, prompting plans to shift logistics to facilities along the New Jersey Turnpike. This consolidation would likely result in the closure of all 15 local delivery warehouses and the loss of 2,000 jobs, excluding the 5,500 employees at the JFK8 fulfillment center.
Timeline
2022: JFK8 fulfillment center employees voted to unionize.
2025: Amazon closed seven warehouses in Quebec during a labor dispute.
March 2025: 1,900 warehouse workers and 2,800 contractors lost jobs.
2026: Council Member Cabán reintroduced the Delivery Protection Act.
October 16, 2026: Amazon threatened to relocate operations if the bill passes.
Market Landscape
Amazon’s threat to exit the city mirrors its operational strategy during the 2025 Quebec warehouse closures. The move reflects a broader trend of large-scale logistics providers threatening to relocate infrastructure in response to mandated changes in worker classification.
Operators in the city should evaluate their own logistics reliance on Amazon’s local delivery infrastructure, as a bill passage could force a significant shift in regional supply chain stability. Businesses should consult with counsel regarding how potential increases of $5.20 per package could influence their procurement costs.
The takeaway
Business owners should monitor the progress of the Delivery Protection Act in the City Council to gauge potential disruptions to local fulfillment capabilities. Track the bill’s status and consider alternative logistics partnerships if regional distribution costs are projected to rise significantly.
Further reading
For more on local labor policies, visit Employment.
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Should city governments mandate direct employment for delivery workers even if it risks local business closures?
