On June 29th, 2023, New York City Mayor Eric Adams signed into law a bill that requires food delivery companies like Uber Eats, DoorDash, and Grubhub to pay their workers a minimum wage of $17.96 per hour, plus tips. The law went into effect on July 12th, though it was temporarily blocked by a court order on July 6th. On August 3rd, a New York State Supreme Court judge struck down the motion to block the law, allowing it to take effect.
The new law applies to all food delivery workers classified as independent contractors and calculates pay on a per-hour basis, even when not actively delivering orders. It also requires companies to pay workers for all working time, including wait times between deliveries, and provide bathroom access and pay information.
Major delivery companies Uber, Grubhub, and DoorDash have sued New York City to block the law, arguing it will harm businesses and consumers, and is unconstitutional. But labor advocates have praised the law as necessary to ensure fair wages in the industry.
It remains to be seen what impact the $18 minimum wage will have. Some experts believe it could raise costs for consumers and limit delivery options, while others think it will reduce turnover and improve conditions for drivers. Either way, it represents a major victory for delivery worker rights in New York.
While the effects are still unfolding, the passage of New York’s $18 minimum wage law for food delivery workers is a milestone in the fight for fair labor standards in the gig economy. Drivers finally have the backing of the law to demand better pay and working conditions from billion-dollar delivery giants. How this plays out in New York may well set the tone for regulatory action supporting gig workers across the country.
