A judge has denied Uber, DoorDash, and Grubhub’s request to avoid paying minimum wage to their delivery workers in New York City. This decision came as part of an ongoing lawsuit challenging a pending law that aims to provide better wage protections to app-based workers. The law, once established, would require third-party delivery providers to pay their workers a minimum wage of approximately $18 per hour before tips, with yearly increases. Currently, food delivery workers in the city earn an estimated average of $7 to $11 per hour. While the three major companies will have to comply, a smaller delivery service called Relay will be granted additional time to renegotiate its contracts with restaurants.
This development makes New York City the first U.S. city to mandate a minimum wage for app-based deliveries. It is expected that other cities will follow suit. Previously, the city had successfully pushed ride-hailing apps to increase their minimum rates for drivers, resulting in Uber and Lyft raising their per-mile rates by slightly over 5 percent in 2022. The decision by the judge affirms the city’s commitment to improving wage protections for gig workers and could set a precedent for similar regulations in the future.
In conclusion, the judge’s ruling denies Uber, DoorDash, and Grubhub’s attempt to circumvent a new law that would require them to pay minimum wage to their delivery workers. This decision supports the city’s effort to establish better wage protections for app-based workers. The pending law would necessitate a minimum wage of about $18 per hour before tips, with yearly increases, for delivery workers. While this makes New York City the first city in the U.S. to require a minimum wage for app-based deliveries, it is likely that other cities will soon adopt similar regulations. The ruling signifies a victory for efforts to improve gig workers’ earnings and could set a precedent for future legislation in this domain.