Uber, Doordash, and Grubhub sued New York City on Thursday to stop a new law from going into effect that would raise the minimum wage for tens of thousands of delivery workers across the city. (via EaterNY)
following months of back and forth between delivery app companies, the workers they employ, and city officials. The law goes into effect on July 12 and requires delivery companies to pay their workers either 50 cents for each minute they spend on a trip, or around $18 per hour for the time they are active on their apps, not including tips. The minimum will increase to just under $20 in 2025.
Supporters of the higher minimum wage say it more fairly compensates delivery workers, who are considered independent contractors and are not provided health care coverage or other benefits by the apps they work for.
The historic minimum wage was first proposed in 2021. The policy was supposed to go into effect at the start of 2023, but it was delayed followingfrom delivery app companies, who argued higher hourly wages would result in more limitations on workers. Under a former proposal, the Department of Consumer and Worker Protection suggested paying delivery workers a minimum of $23.82 per hour by 2025. The rate was reduced to its current level, $19.96 an hour, in March.
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