New York City has become the first city in the nation to mandate a minimum wage for food delivery workers who use apps like Uber Eats, DoorDash, and Grubhub. The new rule, which will take effect on July 12th, 2023, will require app-based delivery services to pay their workers at least $17.96 per hour before tips, and $19.96 per hour by 2025. This is a significant increase from the current average pay of about $12 per hour, as calculated by the city’s Department of Consumer and Worker Protection (DCWP).
The minimum wage rule is based on a study conducted by DCWP, which surveyed more than 10,000 food delivery workers in New York City and found that they face many challenges and expenses, such as long wait times, traffic hazards, bike thefts, low tips, and lack of benefits. The study also found that food delivery workers are essential to the city’s economy and culture, especially during the COVID-19 pandemic, when they provided a lifeline to many restaurants and customers.
The rule aims to ensure that food delivery workers receive fair compensation for their work and are able to cover their costs and taxes. The rule also gives apps some flexibility in how they pay their workers, as long as they meet the minimum wage requirement. Apps can pay workers per trip, per hour, or use their own formulas, as long as they can show that their workers make at least $19.96 per hour on average.
The rule has been welcomed by many food delivery workers and advocates, who say it will improve their living standards and dignity. However, some app companies have criticized the rule as misguided and harmful, and have threatened to sue the city or raise their prices. They argue that the rule will reduce the flexibility and choice of workers and customers, and force them to cut jobs or increase fees.
The minimum wage rule is part of a broader effort by New York City to protect and empower food delivery workers, who have been organizing for better working conditions and rights. In December 2021, the city passed a package of laws that require apps to provide workers with insulated bags, bathrooms, rest areas, and information about their earnings and tips. The city also launched a program to provide free e-bikes to low-income food delivery workers.
The minimum wage rule is expected to benefit more than 60,000 food delivery workers in New York City, who deliver millions of meals every day. It is also likely to inspire other cities and states to follow suit and adopt similar measures to support this growing and vital workforce.
