A judge on Friday issued rulings allowing four food delivery apps to temporarily delay implementing a city-mandated wage hike for delivery workers.
DoorDash, Grubhub, Uber Eats and Relay Delivery filed lawsuits Thursday seeking emergency rulings to block new legislation developed by the city’s Department of Consumer and Worker Protection.
Under the legislation, delivery workers would begin earning a minimum of $17.96 an hour by July 12.
What You Need To Know
- A judge on Friday issued rulings allowing four food delivery apps to temporarily delay implementing a city-mandated wage hike for delivery workers
- DoorDash, Grubhub, Uber Eats and Relay Delivery filed lawsuits Thursday seeking emergency rulings to block new legislation developed by the city’s Department of Consumer and Worker Protection
- Under the legislation, delivery workers would begin earning a minimum of $17.96 an hour by July 12. By April 2025, the legislation requires that minimum wage go up to just under $20 an hour
By April 2025, the legislation requires that minimum wage go up to just under $20 an hour. That's nearly triple what the city calculates these workers make on average per hour today.
Court filings by food delivery apps looking to block the policy say it is unfair to their business model, and based on incorrect calculations. They argue the plan will actually mean delivery workers will make more than $30 an hour, and pass on a cost of at least $5 more to consumers.
The lawsuits claim the apps are not opposed to efforts to boost worker wages. However, they say the city’s calculations are flawed because they do not consider tips, active delivery hours and other factors.
In a statement responding to the judge’s rulings on Friday, Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga said the agency was “extremely disappointed that the apps are delaying the implementation of the minimum pay rate.”
“These apps currently pay workers far below the minimum wage, and this pay rate would help lift thousands of working New Yorkers and their families out of poverty,” Mayuga said. “We look forward to a quick decision so that the dignified pay rate that workers deserve to earn is not delayed any more than necessary."
In separate statements released Friday, Uber, Grubhub and DoorDash lauded the rulings.
“We are pleased with the judge's decision today to delay implementation of a rule that, if allowed to stand, will have serious adverse consequences for delivery partners, consumers and independent businesses,” Grubhub said in its statement.