A judge has rejected Uber, DoorDash, and Grubhub’s attempt to avoid paying minimum wage to their delivery workers in New York City. The pending law aims to provide better wage protections for app-based workers, requiring third-party delivery providers to pay a minimum wage of around $18 per hour before tips. The amount will increase every year starting from April 1 and takes into account the extra expenses faced by gig workers. This decision makes NYC the first US city to establish a minimum wage for app-based deliveries, setting a potential precedent for other cities to follow suit.
Previously, the three companies, along with Relay Delivery, had filed a lawsuit against the city, arguing that the increased rates would negatively impact their services. However, with the judge’s ruling, the law will be able to move forward. While Uber, DoorDash, and Grubhub must comply once it takes effect, Relay will have more time to renegotiate its contracts with restaurants. This development reflects the growing trend of cities pushing for fair compensation for gig workers, as seen with previous efforts to increase minimum rates for ride-hailing drivers, which forced Uber and Lyft to raise their per-mile rates by over 5% in 2022.