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Amazon sues New York over new labor law, calling it unconstitutional power grab

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Amazon has filed a lawsuit against the New York State Public Employment Relations Board (PERB), seeking to block enforcement of a new state law that it argues illegally intrudes on federal authority over private sector labor disputes.

The law, Senate Bill 8034A, was signed by Governor Kathy Hochul on September 5. She defended it as necessary to protect workers amid a backlog at the National Labor Relations Board (NLRB), which has been paralyzed since President Donald Trump removed Democratic member Gwynne Wilcox in January, leaving the agency without a quorum.

Amazon’s complaint, filed in Brooklyn federal court, claims the law is unconstitutional because it allows PERB to claim jurisdiction over union organizing, collective bargaining, and workplace disputes—areas traditionally overseen by the NLRB. “New York has created the collision of state and federal authority Congress sought to avoid,” Amazon said in the filing.

The conflict became immediate when PERB filed a charge over the August 9 firing of Brima Sylla, a Staten Island warehouse worker and union vice president, even as the NLRB had already begun its own review.

The NLRB itself sued New York on September 12, also seeking to block enforcement of the law, with Acting General Counsel William Cowen arguing that federal law preempts state measures regardless of the board’s quorum status.

With 1.56 million employees worldwide, Amazon has been a frequent flashpoint in labor disputes. The case could set an important precedent for whether states can temporarily step into labor oversight roles when the NLRB is gridlocked.

New York Sues Zelle Over $1 Billion in Consumer Fraud Losses

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New York Attorney General Letitia James filed a lawsuit against Zelle, claiming the electronic payment platform’s failure to adopt key security measures allowed fraudsters to steal more than $1 billion from consumers. The case was filed in Manhattan state court following the U.S. Consumer Financial Protection Bureau’s decision in March to drop a similar case.

James alleged that Zelle’s parent, Early Warning Services, owned by seven major U.S. banks, knew about the platform’s vulnerabilities for years but resisted implementing safeguards. She said fraudsters exploited the platform through scams such as fake utility bills, nonexistent goods, and impersonating banks, leaving victims without support even after money was stolen.

Zelle responded that fraud occurs when users are tricked into sending money and that over 99.95% of transactions are completed without reported fraud. The company called the lawsuit a “political stunt” and warned that holding it liable could raise consumer fees.

The lawsuit seeks stronger anti-fraud protections and restitution for affected New Yorkers. Previous actions by James include suits against Capital One and settlements with MoneyGram over similar consumer protections issues.

Elon Musk’s X Sues New York Over Social Media Hate Speech Disclosure Law

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Elon Musk’s social media company, X Corp, filed a lawsuit on Tuesday challenging the constitutionality of New York’s Stop Hiding Hate Act, which mandates social media platforms to publicly disclose how they monitor and manage hate speech, extremism, disinformation, harassment, and foreign political interference.

X argues the law violates the First Amendment and state constitutional rights by forcing the company to reveal “highly sensitive and controversial speech” that New York officials might find objectionable, potentially exposing the company to lawsuits and heavy fines. The law imposes civil penalties of up to $15,000 per violation per day.

The lawsuit, filed in Manhattan federal court, states that deciding what speech is acceptable is a complex issue that “engenders considerable debate among reasonable people,” and that regulating this is not a role for government authorities.

X cited a letter from the law’s sponsors, state Senator Brad Hoylman-Sigal and Assemblymember Grace Lee, accusing Musk and X of having a “disturbing record” on content moderation that allegedly threatens democratic foundations.

New York Attorney General Letitia James, who enforces the law, is the named defendant. Her office did not immediately comment.

Since acquiring Twitter in October 2022 for $44 billion, Musk has promoted himself as a free speech absolutist, significantly reducing content moderation on the platform, which was rebranded as X.

New York’s law, signed in December by Democratic Governor Kathy Hochul with help from the Anti-Defamation League, requires platforms to disclose their efforts and report progress in combating harmful content.

The law mirrors a similar 2023 California law, whose enforcement was partially blocked by a federal appeals court last September over free speech concerns. Notably, California agreed in February to suspend enforcement of disclosure requirements after reaching a settlement with X.

Legislators Hoylman-Sigal and Lee expressed confidence that the court will uphold New York’s law, emphasizing the necessity of transparency given Musk’s resistance.

Case Reference: X Corp v. James, U.S. District Court, Southern District of New York, No. 25-05068.