Food delivery drivers in New York City will not see the expected increase to an $18 per hour minimum wage next week.
A state judge in New York issued a stay on Friday, July 7, which temporarily halts a rule that would requiring food-ordering apps to pay delivery workers the new wage.
This order comes in response to lawsuits filed by Uber, DoorDash, and Grubhub to block the law from taking effect on Wednesday, July 12.
Read More: Food delivery giants sue New York City over minimum wage rule
New York State Supreme Court Justice Nicholas Moyne ruled the wage measure cannot be implemented before oral arguments for a temporary injunction on July 31.
The New York City Department of Consumer and Worker Protection, one of the lawsuit’s defendants, has until July 24 to provide relevant documents.
The head of the consumer protection agency expressed disappointment over the stay and hoped a ruling on the injunction would happen soon.
Vilda Vera Mayuga, the city’s consumer and worker protection commissioner said: “We look forward to a quick decision so that the dignified pay rate that workers deserve to earn is not delayed any more than necessary.”
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Currently, app companies pay drivers per delivery rather than per hour, resulting in an estimated wage of about $7.09 per hour before tips.
The new rule, announced last month, aimed to establish a minimum wage of $17.96 per hour for food delivery workers, with further increases leading to nearly $20 per hour by 2025.
In their lawsuits, Uber, DoorDash, and Grubhub argued the city’s calculation of the new compensation relied on flawed data, including the results of a delivery worker survey with questionable methodology.
DoorDash praised the judge’s decision.
It said: “We hope that this puts us on the path toward the city establishing a more reasonable earnings standard that reflects how these platforms are used by New Yorkers.”
