As per reports from The Washington Post, Uber, DoorDash, and Grubhub have initiated legal action seeking an injunction to halt the implementation of New York City’s newly legislated $18 minimum wage for food delivery app personnel. The app-based delivery services have requested a temporary restraining order against the new regulations, scheduled to take effect on July 12th. “We can’t sit idle and watch the harmful impacts of this pay standard on New York City’s customers, merchants, and the delivery workforce it’s intended to assist,” commented a spokesperson from DoorDash to CNN.
The Worker’s Justice Project, which supported the survey behind the wage increase, has criticized the fresh lawsuit. Ligia Guallpa, the director, communicated to the Post, “This recent legal ploy to maintain their business model sacrifices workers who can hardly make ends meet in a city grappling with a significant affordability crisis.”
New York set a precedent as the first American city to impose a minimum wage for food delivery workers, directing platforms to compensate their workers $17.96 per hour, along with tips, by July 12th. While the city’s minimum wage stands at $15 per hour, the additional amount compensates for the higher taxes and work-related expenses that contractors, like delivery workers, must pay. As per the NYC Department of Consumer and Worker Protection (DCWP), NYC is home to over 60,000 food delivery workers who earn, on average, $7.09 per hour.
Nevertheless, DoorDash and GrubHub have contested the validity of the pay estimate, suggesting it relied on flawed methodology. The lawsuit argues that workers surveyed were preemptively informed that the survey’s goal was to boost delivery workers’ wages, implying “correct” responses.
Grubhub voiced apprehension over the heightened challenges in supervising workers. In a separate lawsuit, Uber argued that a higher minimum wage would elevate food order prices, adversely affecting local eateries.
For years, app-based services like Uber have been battling regulations aimed at the “gig worker” economy. Earlier this year, a ruling allowed Uber and Lyft to continue classifying their drivers as contractors, instead of transitioning them to salaried employees.
Frequently Asked Questions (FAQs) about Gig Economy Minimum Wage Lawsuit
Who are the companies involved in the lawsuit against New York City’s new minimum wage law?
Uber, DoorDash, and Grubhub are the companies involved in the lawsuit against New York City’s new minimum wage law for food delivery app workers.
What is the new minimum wage law in New York City for food delivery workers?
The new law in New York City mandates a minimum wage of $17.96 per hour, plus tips, for food delivery workers.
When is this new minimum wage law supposed to be implemented?
This new minimum wage law is set to be implemented on July 12th.
Why are these companies opposing the new minimum wage law?
These companies argue that the new wage law will have harmful impacts on customers, merchants, and the delivery workers it is meant to support. They also express concern over increased food order prices and challenges in worker supervision.
How many food delivery workers are estimated to be in New York City?
The NYC Department of Consumer and Worker Protection estimates that there are over 60,000 food delivery workers in the city.
What is the current average wage of food delivery workers in NYC according to the DCWP?
According to the NYC Department of Consumer and Worker Protection (DCWP), food delivery workers earn an average of $7.09 per hour.