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July 7, 2023

Legal News

July 7, 2023

Food Delivery Services Sue NYC Over Minimum Pay Rates

Uber Eats, DoorDash, and Grubhub have filed a lawsuit against New York City in an attempt to halt the implementation of the city's new minimum pay regulations for food delivery workers. The regulations, which have been hailed as a pioneering move on a national scale, are expected to significantly increase the average earnings of app-based delivery workers in the coming years. Starting from July 12, the new pay rate of $17.96 per hour will come into effect.

At present, New York City's over 60,000 delivery workers earn an average of $7.09 per hour, as reported by the city authorities. In an effort to prevent the changes from being enforced, the food delivery services have requested a temporary restraining order from the state Supreme Court in Manhattan. The companies argue that the new regulations would impose additional costs on consumers.

Under the proposed rule, food delivery services will have some flexibility in determining how they compensate new workers. The apps can choose to pay their delivery workers per trip, per hour worked, or adopt another payment policy devised by the company, as long as the earnings meet the minimum pay rate set by the city.

From different industries to different locations, the rules governing payment of wages to employees are complicated. The attorneys at Outside Legal Counsel LLP can assist both employers and employees to ensure that the payment of wages are in compliance with the law.

This is not legal advice and is attorney advertising

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