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Michael Wright, Executive Director – Customized Logistics and Delivery Association
For months, CLDA has been closely following New York City’s Intro 0518-2026, a proposal that could fundamentally change the relationship between businesses, warehouses and the third-party delivery companies they rely on.
Now, a similar fight is developing more than 700 miles away.
Chicago’s Delivery Protection Act, Ordinance O2025-0018778, is scheduled for a subject-matter hearing before the Chicago City Council on September 15. Like the New York proposal, supporters have framed the measure largely around Amazon and its Delivery Service Partner model. But the language and potential impact extend well beyond a single company. The proposal would regulate last-mile delivery facilities and restrict subcontracted delivery arrangements. The Teamsters, which are advocating for passage, similarly describe the Chicago proposal as requiring licenses for last-mile delivery facilities and prohibiting certain subcontracting practices. Read more at: (PublicNow) (open link in new tab)
For CLDA members, that distinction matters.
It is easy to hear “Amazon DSP legislation” and assume these proposals only affect one very large retailer.
That is not what concerns CLDA.
The final-mile industry is built around business-to-business partnerships. Retailers, healthcare systems, manufacturers, distributors, e-commerce companies and countless other shippers rely on experienced third-party carriers to perform delivery work they either cannot or do not want to operate internally.
New York’s Intro 518, as currently written, could significantly restrict that model by requiring certain warehouse and delivery functions to be performed by employees of the last-mile facility operator rather than by a third-party delivery company. As CLDA has previously explained, that can create problems even for delivery companies whose drivers are already W-2 employees. (CLDA)
Chicago raises many of the same concerns. The draft ordinance discussed by CLDA’s Government Affairs Committee would potentially require workers serving certain last-mile warehouses to be employees of the warehouse owner or operator while establishing additional licensing, recordkeeping, safety, bonding and fleet requirements.
The practical question for our industry is therefore much larger:
Should a shipper be prohibited from contracting with a legitimate, professional delivery company simply because a city decides that the delivery function must be brought in-house?
For CLDA, that is where these proposals become particularly concerning.
As of CLDA’s September 3 Government Affairs Committee meeting, Intro 518 had not yet been placed on the September New York City Council calendar. The committee heard that significant pressure continues on both sides of the issue and that preventing a vote during the current session remains an important objective.
CLDA continues to support the New York Delivers Coalition, a group of delivery service partners, businesses and workers opposing Intro 518 and advocating for an approach that protects workers without dismantling the city’s existing last-mile delivery network. The coalition says proposed restrictions could put local delivery businesses and thousands of jobs at risk.
The coalition is also expanding its grassroots outreach to businesses and individuals that rely on the delivery network, including tools that allow participants to contact New York City Council members directly. CLDA is encouraging members—particularly those doing business in New York—to participate.
Take Action with the New York Delivers Coalition (Open link in new tab)
One of CLDA’s warnings about Intro 518 has been that a policy adopted in one major market can quickly become a model for others.
Chicago is an important reminder that this concern is not theoretical.
The Chicago Delivery Protection Act is now headed for a September 15 subject-matter hearing, with organized labor actively urging the City Council to advance it.
During CLDA’s Government Affairs Committee discussion, members also raised the possibility that similar concepts could eventually appear in other large cities. Reports concerning Los Angeles and San Francisco remain unconfirmed, but the emergence of Chicago after New York reinforces the need for national monitoring.
That is particularly important for companies operating in multiple jurisdictions.
Imagine running delivery operations in five cities and having five different rules governing whether your customer is legally permitted to outsource its deliveries.
Or imagine a healthcare provider, retailer or manufacturer being told that it must build an internal delivery workforce even though an established local carrier already provides the service safely, professionally and efficiently.
These are not simply worker-classification questions. They go to the heart of whether businesses can continue using specialized third-party delivery providers at all.
CLDA supports responsible standards for worker safety, insurance, training, compliance and ethical business practices.
Those objectives do not require eliminating legitimate business relationships.
There is an important distinction between addressing bad actors and creating a regulatory structure that prevents responsible companies from providing outsourced delivery services altogether.
Our industry should be part of the conversation about improving safety and accountability. But policymakers should also understand that final-mile delivery is an interconnected network of shippers, carriers, independent businesses, employees and drivers.
Changing one part of that system can have consequences throughout the entire supply chain.
The Government Affairs Committee will be closely monitoring the September 15 Chicago hearing, including any amendments or exemptions that emerge.
We will also continue working alongside the New York Delivers Coalition to oppose Intro 518 and educate policymakers about its potential impact on legitimate delivery companies.
And these are only two of the issues CLDA is monitoring around the country.
Through our Logistics Legislation Monitor, members can follow state and federal developments affecting independent contractors, worker classification, freight brokers, employment law, delivery operations and other issues that can directly affect their businesses.
View the CLDA Logistics Legislation Monitor
The final-mile industry moves quickly. Increasingly, the policies governing it do too.
CLDA will continue working to make sure our members know what is coming and that our industry has a voice before those policies become law.
Michael Wright, Executive Director – Customized Logistics and Delivery Association
The debate over delivery regulation in New York and Chicago is often framed around Amazon. For CLDA members, however, the bigger issue is much more fundamental: whether businesses should still be allowed to hire professional third-party companies to perform their deliveries.
That distinction is at the center of CLDA’s concerns with New York City’s Intro 0518-2026 and the Chicago Delivery Protection Act, Ordinance O2025-0018778.
Both proposals have been promoted largely as efforts to address the Amazon delivery model. But during CLDA’s September Government Affairs Committee meeting, members emphasized that the potential impact reaches well beyond Amazon or its Delivery Service Partners.
The concern is the concept of a direct-hire mandate.
For many businesses, delivery is an important part of their operation, but it is not their core business.
A retailer sells products. A healthcare organization provides patient care. A manufacturer produces goods. A distributor manages inventory.
Instead of building an internal delivery department, those companies contract with professional courier and final-mile providers that already have the people, technology, vehicles, compliance systems and operational expertise necessary to perform the work.
In its simplest form:
Shipper / Customer
↓
Professional Courier or Final-Mile Provider
↓
Drivers and Delivery Personnel
That structure is fundamental to the customized logistics and delivery industry.
The courier company is not simply supplying labor. It may be managing routing, dispatch, customer service, technology, insurance, driver qualification, chain of custody, compliance, proof of delivery and the many other operational responsibilities that come with moving goods from one location to another.
The proposals being discussed in New York and Chicago raise concerns because certain delivery workers could instead be required to work directly for the warehouse owner or operator.
The model begins to look more like this:
Warehouse / Retailer / Shipper
↓
Direct Employees Performing Delivery
The independent delivery company can effectively disappear from the relationship.
During a recent CLDA Government Affairs Committee discussion, the issue was described as substantially broader than worker classification alone. Members emphasized that a requirement tying the delivery worker directly to the warehouse or customer could affect established third-party logistics companies regardless of how those companies classify their own workforce.
That is an important point.
A courier company could employ its drivers as W-2 employees and still be affected if the law requires those workers to instead become employees of the courier company’s customer.
Worker classification remains one of the most important issues facing the final-mile industry.
But a direct-hire mandate creates a different question:
Who is legally permitted to provide the delivery service?
Consider a retailer that contracts with a CLDA member to make same-day deliveries.
Today, the retailer can choose a professional delivery partner based on service, expertise, technology, geographic coverage, safety, price and performance.
Under a strict direct-hire mandate, the retailer could potentially be required to create its own delivery workforce instead.
That could mean:
For some very large companies, building that infrastructure may be possible.
For many other businesses, it may not be practical at all.
The final-mile industry exists precisely because delivery is often specialized.
A healthcare courier may understand specimen handling, chain of custody and time-critical transportation.
CLDA continues to work closely with the Transportation Security Administration (TSA) and our industry partners to advance practical improvements to the security framework governing the air cargo supply chain. Led by CLDA President-Elect Ralph Perrothers, CLDA’s efforts include ongoing collaboration with senior TSA leadership, congressional outreach, and coalition partners including the Airforwarders Association (AfA), TEANA, ECA, TIA, and AEMCA.
These discussions are focused on modernizing regulations while maintaining the high security standards that protect the nation’s air cargo system.
Current initiatives include:
We are encouraged by the level of engagement from TSA and our industry partners and will continue advocating for practical, industry-driven solutions that enhance security while reducing unnecessary administrative burdens for compliant companies.
CLDA remains committed to ensuring the voice of the customized logistics industry is represented as these important initiatives continue to move forward. Additional updates will be shared as progress is made.
By Dominick Simone, SVP-Client Services, SCI, LLC.
Recent headlines have once again brought national attention to the ongoing conversation surrounding independent contractors. While much of the media coverage has focused on political personalities and organizations, the larger issue remains unchanged: the future of independent businesses in America.
For those working in transportation, logistics, delivery, construction, and countless other industries, this isn’t a new conversation. For years, lawmakers, regulators, labor organizations, and advocacy groups have debated whether the independent contractor model should remain a viable option for workers and businesses alike. Proposals such as California’s Assembly Bill 5 (AB5), the federal PRO Act, and evolving Department of Labor guidance have all reflected a broader effort to redefine worker classification.
Although individual proposals may come and go, the broader effort to reshape independent contracting continues. That reality serves as an important reminder that the industry must remain engaged.
Independent contractors represent millions of entrepreneurs who have intentionally chosen to operate their own businesses.
Throughout the logistics industry, these professionals provide the flexibility that keeps supply chains moving while creating opportunities for individuals to build successful businesses on their own terms.
Yet uncertainty surrounding worker classification continues to create challenges for both businesses and independent contractors.
Rather than relying on increasingly subjective worker classification standards, many organizations believe the focus should be on creating greater clarity.
That is why SCI actively supports the Freelancer Expense and Tax Relief (FLEX) Act.
The FLEX Act would modernize outdated tax rules by establishing objective standards that help distinguish legitimate independent businesses from traditional employment relationships. Instead of creating additional uncertainty, it provides businesses and independent contractors with clearer expectations while preserving the freedom to operate independently.
SCI believes protecting legitimate independent businesses requires more than responding to new proposals after they emerge. It requires advocating for practical, balanced solutions that recognize today’s workforce and the vital role independent contractors play throughout the American economy.
The headlines may change, but the conversation surrounding independent contractors continues.
As new proposals emerge and debates evolve, SCI will continue supporting policies that promote clarity, consistency, and the long-term success of legitimate independent businesses.
Because preserving the opportunity to work independently isn’t simply about today’s legislation—it’s about protecting entrepreneurship, innovation, and the future of the independent workforce.
Source: Kim Kavin, “The Rise of Megan Romer,” Good Morning, Comrade (Freelance Busting), August 3, 2026. https://www.freelancebusting.com/
By Casie Daugherty, Prime
Prime continues to advocate with the U.S. Congress on adoption of the FLEX Act, primarily focusing on securing sponsors in both the House and Senate. We continue to receive good reception from offices with whom we had discussed previous versions of legislation seeking clarification around the tax status of independent contractors and believe we will be able to secure the support of a Member who serves on the House Ways and Means Committee to lead the effort on our behalf.
The House took the first step today on Reconciliation 3.0 by passing it on a party-line vote out of the House Budget Committee. Notably, they have chosen not to include any tax provisions in the bill, over the public and private objections of Ways and Means Chairman Jason Smith (R-MO). Chairman Smith says that he will continue to push for tax provisions to be included, and has previously threatened not to support the legislation if it doesn’t include such provisions, but so far he has been unable to convince House Leadership. Prime will continue our discussions with Ways and Means leadership to press for FLEX Act inclusion in Reconciliation to be ready if there is a course change on including tax provisions.
Just like that, six months have passed since I stepped into the role of Executive Director of CLDA.
I continue to be grateful for the opportunity to serve this association alongside such a dedicated group of volunteer leaders and a truly outstanding staff team. Over the past six months, I have had the pleasure of getting to know many of our members and learning more each day about the industry you have built your businesses and careers around. It has only deepened my appreciation for the work you do and the value CLDA can bring to this community.
If we have not yet had the chance to meet in person, I hope to see you on July 9 at CONNECT PHL. As a South Jersey native with a father who was born and raised in Philadelphia, I am especially excited to welcome CLDA members to my corner of the country. I encourage you to stay for the weekend, explore our nation’s first capital, enjoy the food and history of Philadelphia, or head down to the Jersey Shore, where I grew up. I may be biased, but I will put the Jersey Shore in July up against just about anywhere. If you are planning to come in and want recommendations, send me a note. I would be glad to point you in the right direction.
There is a lot taking shape at CLDA, and I am excited to share more as the year continues. For now, here are a few highlights and a look at what is ahead.
First, MOVEMENT by CLDA and its sister publication, DISPATCH, are being released to the world. Since my first week on the job, I have looked forward to improving and streamlining CLDA’s email communications. MOVEMENT will be our monthly, members-only hub for CLDA updates, educational features, member opportunities, and association news. DISPATCH, our weekly newsletter, will focus on timely industry updates, advocacy matters, and the information you need to stay informed from week to week.
We are also making meaningful progress in advocacy. CLDA continues to work on behalf of our members to help shape policy, influence important conversations in Washington, and protect the way this industry does business. One thing I have learned quickly is that advocacy is often most successful when members do not have to feel its impact every day. But that does not mean the threats are not real. Issues affecting independent contractor models, transportation operations, labor rules, and regulatory compliance continue to move quickly, and CLDA needs engaged members helping to carry that message forward.
I encourage you to consider supporting CLDA’s advocacy work with a monthly donation here. I also invite you to consider applying to join the Government Affairs Committee. The best time to get involved is before an issue reaches your doorstep.
In education, we have updated our internal member education portal with new navigation and video content, and we are working on several new initiatives for 2027. More details will be shared soon, but this is an area where I believe CLDA can continue to provide real, practical value to members year-round.
Finally, I am very excited about what is ahead for Final Mile Forum 2027 in Orlando. It is still a little early to share everything, but I can say with confidence that we are building something special. Our goal is to make FMF 2027 one of the strongest, most valuable, and most talked-about CLDA events in years. Registration is just around the corner, so keep an eye on your inbox.
Thank you again for the warm welcome, the candid feedback, and the continued commitment so many of you bring to CLDA. I look forward to seeing you soon.
Michael Wright
CLDA Executive Director
