Starting in July, food delivery workers in New York City will make nearly $18 an hour, as New York becomes the nation's first city to mandate a minimum wage for the app-based restaurant employees.
Apps that only pay per trip must pay approximately 50 cents per minute of trip time; apps that pay delivery workers for the entire time they're logged in, including when they are waiting for an order, must pay approximately 30 cents per minute.
New York City's minimum wage is $15. The new law sets app workers' pay higher to account for the fact that apps classify delivery workers as independent contractors, who pay higher taxes than regular employees and have other work-related expenses. The law represents a compromise between worker advocates, who had suggested a minimum of about $24 per hour, and delivery companies, which had pushed to exclude canceled trips from pay and create a lower calculation for time spent on the apps.Apps pushed back against the minimum pay law, with Grubhub saying it was"disappointed in the DCWP's final rule, which will have serious adverse consequences for delivery workers in New York City.
"The city isn't being honest with delivery workers — they want apps to fund the new wage by quote — 'increasing efficiency.' They are telling apps: eliminate jobs, discourage tipping, force couriers to go faster and accept more trips — that's how you'll pay for this," Uber spokesperson Josh Gold told CBS News.
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