Food delivery companies such as Uber and DoorDash have initiated lawsuits against New York City regarding the upcoming minimum wage law for delivery workers. The law, set to be implemented on July 12, mandates that app-based food delivery companies must raise their workers’ minimum wage to $17.6 per hour. It also requires a subsequent increase to $19.96 per hour by April 2025 to adjust for inflation.
The companies have filed lawsuits against the city, arguing that the new earnings standard policy is based on a flawed understanding of the food delivery industry. While Uber has filed an independent lawsuit, DoorDash and Grubhub have taken joint legal action.
In a statement on July 6, DoorDash criticized the law, referring to it as a “bad policy” resulting from a flawed process. They claim that the study conducted by the Department of Consumer and Worker Protection (DCWP) that initiated the new earnings standard was biased.
DoorDash has also questioned why the new law only applies to delivery services facilitating meal deliveries and not those facilitating grocery deliveries. Another company, Relay Delivery Inc., has filed a lawsuit stating that the law would force them out of business.
The DCWP study, which gathered data from surveys of major food delivery companies such as UberEats, DoorDash, Grubhub, and Relay, revealed that delivery workers earn an average of $11 per hour with tips and approximately $7 per hour without tips. Since delivery workers are classified as contractors rather than company employees, they do not currently qualify for the city’s minimum wage law.
New York City estimates that over 60,000 app-based restaurant delivery workers will be positively impacted by the new law.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
