A New York judge has ruled in favor of implementing a minimum pay rate of $18 per hour for the city’s food delivery workers, dealing a blow to Uber, DoorDash, and Grubhub. The delivery apps had sued the city in an attempt to block the standard, but they were unsuccessful. The minimum wage will increase to $19.96 per hour by 2024 to account for inflation. This decision is seen as a victory for worker advocacy groups who have been pushing for fair pay for delivery workers.
While delivery workers are considered independent contractors and do not enjoy the same employee protections as minimum wage guarantee or paid sick leave, this ruling will ensure that they are compensated fairly. The delivery apps argued that a higher wage mandate would result in price hikes for consumers and make tracking time spent on the apps without deliveries difficult. However, the judge’s ruling emphasizes the need to prioritize the rights and well-being of workers over the profits of multi-billion dollar companies.
Relay, a smaller NYC-based delivery platform, also filed a lawsuit against the city and was granted an injunction. They argued that the rule did not consider their unique business model, which focuses on high earnings for their couriers who currently average more than $30 per hour. Overall, this ruling sets a precedent for better worker protection in the gig economy and serves as a reminder that workers will always fight for their rights.