Home » US business news • US Employment News » Judge approves $18 minimum pay for NYC food delivery workers
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A judge has ruled in favor of raising the pay of app-based food delivery workers in New York City, equating to $18 an hour.
NYC passed a law in June setting new pay rates for delivery drivers.
It’s based on earning roughly 50 cents per minute during deliveries or a minimum of $17.96 per hour while actively using the app.
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These rates were slated to commence in July.
But Uber Eats, Grubhub, DoorDash, and Relay launched lawsuits opposing the rates.
The delivery giants requested a preliminary injunction to halt their implementation until a final court ruling.
Judge Nicholas W. Moyne of the New York Supreme Court declined the injunction requests for all companies except Relay.
He said Relay had a distinct business model compared to the other apps and would suffer irreparable harm.
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The companies say the per-minute rate could surpass the minimum wage in other industries.
They also argue paying workers for their online time might result in multiple apps compensating workers for the same hours.
It’s because many drivers work on more than one app simultaneously.
They also claim the city's pay rates were based on flawed surveys and excluded grocery-delivery services from consideration.
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Judge Moyne wrote: “The Court finds these arguments to be unavailing.”
Moyne's order doesn't completely resolve the ongoing lawsuits by the app companies.
Vilda Vera Mayuga, commissioner for New York City's Department of Consumer and Worker Protection, which studied the pay and working conditions of delivery workers, praised the ruling.
She said: “Delivery workers, like all workers, deserve fair pay for their labor.”
A DoorDash representative said the ruling was disappointing.
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Eli Scheinholtz, the company spokesman, said: “The city’s insistence on forging ahead with such an extreme pay rate will reduce opportunity and increase costs for all New Yorkers.
“We will continue evaluating our legal options moving forward.”
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Uber warned it could result in job losses and increased competition among couriers.
However, Relay, a third-party courier service contracting directly with restaurants, said its couriers already earn over $30 an hour on average.
Adam Cohen, a Relay lawyer, said: “Today’s decision protects those couriers.”
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