NYC App-Based Food Delivery Workers’ New Minimum Pay Rates Face Delay

Following a lawsuit filed by Uber Eats, DoorDash, and Grubhub, a judge has ordered a temporary delay on the implementation of new minimum pay standards for app-based food delivery workers in New York City.

City officials had recently announced their intention to significantly increase the earnings of these workers in order to provide them with greater financial stability. The law, which was scheduled to take effect on July 12, aimed to establish an initial pay rate of $17.96 per hour.

However, DoorDash, Grubhub, Uber, and Relay Delivery (based in New York) challenged the city’s rule-making process in the state Supreme Court in Manhattan, arguing that it was flawed and that the increased costs would ultimately be passed on to consumers.

In response, Judge Nicholas Moyne issued an order on Friday to temporarily delay the implementation of the new standard until a hearing on July 31.

The food delivery companies expressed their approval of the decision. Grubhub stated, “We are pleased with the judge’s decision today to delay the implementation of a rule that, if allowed to stand, will have serious adverse consequences for delivery partners, consumers, and independent businesses.” DoorDash also hoped that the ruling would lead to the establishment of a more reasonable earnings standard that reflects the usage of these platforms by New Yorkers.

An Uber spokesperson emphasized the company’s willingness to collaborate with the city and others to develop a minimum pay rule that avoids detrimental consequences for couriers, consumers, and restaurants.

Meanwhile, Vilda Vera Mayuga, the Commissioner of the Department of Consumer and Worker Protection, expressed her disappointment with the delay. She highlighted that the current pay rates offered by these apps fall below the minimum wage and that the proposed pay rate would uplift thousands of working New Yorkers and their families out of poverty. Mayuga looks forward to a swift resolution to ensure that the deserving pay rate for workers is not delayed any longer than necessary.

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More about minimum pay rates

• New York Times: New York City Ordered to Delay Minimum Pay for Delivery Workers
• CNN: NYC’s Minimum Pay Standards for Food Delivery Workers Delayed
• Reuters: Uber Eats, DoorDash, Grubhub Sue NYC Over New Minimum Pay for Delivery Workers
• Department of Consumer and Worker Protection