On Thursday, a New York state judge rejected a bid from Uber, DoorDash, and Grubhub to block New York City’s law setting a minimum wage for app-based gig economy workers, reports Reuters.
The law will require companies to pay delivery workers $17.96 an hour, with a guaranteed rise to $20 by April 2025. Companies are able to choose whether to pay workers per hour or per delivery, however, the total per-hour rate must meet the new minimum.
Opposers claim the law will force them to shrink their service areas to address the new labor costs, which would negatively affect customers and restaurants.
A DoorDash spokesperson stated that the decision was disappointing for workers, merchants, and customers.
"The City’s insistence on forging ahead with such an extreme pay rate will reduce opportunity and increase costs for all New Yorkers," said the spokesperson. Spokespersons for Uber and Grubhub also shared their disappointment with the ruling.
In a press release, the commissioner of the city’s Department of Worker Protection, Vilda Vera Mayuga, pointed to the law’s positives.
"Delivery workers, like all workers, deserve fair pay for their labor and to be able to support themselves and their loved ones," she said. The department is responsible for enforcing the court decision.
Currently, delivery workers in the city earn roughly $11 an hour on average after expenses, below the city’s $15 minimum wage. Full Story (Subscription Required)