Apps can choose if they want to pay delivery workers per trip, per hour worked, or another policy created by the company - as long as earnings meet the minimum pay rate, the city said. Under the new rule, food delivery services will have some flexibility in how they pay new workers. 'Given the broken process that resulted in such an extreme final minimum pay rule, we will continue to explore all paths forward - including litigation - to ensure we continue to best support Dashers and protect the flexibility that so many delivery workers like them depend on,' DoorDash said in a statement. Meanwhile, DoorDash said it may pursue legal action. Grubhub, which noted it believes the city 'had good intentions,' also expressed disappointment and similar concerns over the rule. 'The city is lying to delivery workers - they want apps to fund this increase by eliminating jobs and reducing tipping while forcing the remaining workers to deliver orders faster,' Uber Eats spokesperson Josh Gold said. While Guallpa and others applauded New York's new minimum pay rate, food delivery services including Uber Eats and DoorDash have pushed back - arguing that the decision could have unintended consequences on app workers. 'While there's still work to do, a minimum pay rate for food delivery workers will transform the lives of thousands of families across the city and deliver long overdue justice for deliveristas.'
'This rule will set the pay floor for all the essential deliveristas who work tirelessly - whether through a pandemic, a snowstorm or wildfire smoke - and who have been denied a living wage for far too long,' Gullapa said in a statement. Ligia Guallpa, executive director of the Brooklyn-based Worker's Justice Project, called the move a 'historic moment for New York City' - as labor organizers across the country call for better pay and improved working conditions for gig workers, who often face unreliable earnings and little safety protections. NYC will pay the city's 60,000 app-based delivery workers $17.96 an hour on July 12, which is up from the $7.09 they are currently making. 'People must live off of a base salary and I encourage everyone who's listening to this, don't forget to tip,' Mayor Eric Adams said 'People must live off of a base salary and I encourage everyone who's listening to this, don't forget to tip.' 'This new minimum pay rate, up by almost $13.00 an hour, will guarantee these workers and their families can earn a living, access greater economic stability, and help keep our city's legendary restaurant industry thriving. 'Our delivery workers have consistently delivered for us - now, we are delivering for them,' New York City Mayor Eric Adams said in a Sunday statement announcing the Department of Consumer and Worker Protection's new rule. For the years following, the minimum pay rate will be adjusted annually for inflation. New York's more than 60,000 delivery workers currently make an average of $7.09 an hour, according to the city.īut on July 12, an increased pay rate of $17.96 an hour will take effect - and that minimum wage is set to rise to $19.96 by April 2025, the city said.
The new rule could nearly triple average earnings for app-based delivery workers in the coming years. New York City will implement a minimum pay rate for app-based food delivery workers like Uber Eats and DoorDash - marking a first for the US.
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