Key Points
DoorDash Inc and Grubhub Inc to block New York City's novel law setting a minimum wage for app-based delivery workers...
Uber, DoorDash, Grubhub Inc and a smaller food delivery service, Relay Delivery Inc, claim the law will force them to shrink service areas to absorb the new labor costs, ultimately hitting customers and restaurants...
"The Citys insistence on forging ahead with such an extreme pay rate will reduce opportunity and increase costs for all New Yorkers," the spokesperson said.. Uber in a statement said the law will put thousands of people out of work and force remaining delivery workers to compete against each other to deliver orders faster...
Supporters of the city's law, which is the first of its kind in the United States, say it is needed because delivery workers in the city earn about $11 an hour on average after expenses, far below the city's $15 minimum wage...
App-based delivery workers are usually treated as independent contractors rather than company employees, so general minimum wage laws do not apply to them...
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DoorDash, Uber file lawsuits against New York City's minimum wage law
07, Jul, 23The new law will require companies to pay delivery workers $17.96 an hour, which will rise to nearly $20 in April 2025. Companies can decide whether to pay workers hourly or per delivery, which would be based on the hours workers are logged into the app