Jul 7, 2023 | News Story

Food Delivery Apps Sue NYC Over Minimum Wage Law for Delivery Workers

App-based companies that account for nearly all the food deliveries in the city filed suit Thursday to stop a new law raising worker wages — days before it is set to take effect. DoorDash, Grubhub and Uber are aiming to stop the law that would, on July 12, require them to begin paying delivery workers $17.96 an hour and make New York the first major U.S. city to set pay requirements for its estimated 60,000 delivery workers.

The suits, filed separately in Manhattan Supreme Court, challenge a local law that would increase the hourly rate to $19.96 — before tips — by April 2025, a significant boost from the estimated $11 per hour delivery workers currently earn. The bump also takes into account their operating costs, including bikes, equipment and insurance.

“We’re not surprised to hear that they’re still not happy,” said Ligia Guallpa, Executive Director of Worker's Justice Project, the parent organization of Los Deliveristas Unidos. “I think they will continue to do whatever they can do to pay workers as minimally as possible, or continue to delay the process.” Read more in THE CITY.