Uber and Other Food Delivery Platforms File Lawsuit Against New York City Over Minimum Wage

Minimum wage for restaurant delivery: Uber & Co sue New York City

Self-employed food delivery workers in New York City are set to receive a minimum wage that is approximately double that of waiters, according to regulations set by the New York City legislature. Delivery brokers such as Uber, Doordash, and Grubhub have expressed their support for minimum remuneration but have raised concerns about the specific regulations. They have filed lawsuits against the authority responsible for implementing the regulations, arguing that they are unacceptable and would result in increased costs for consumers and reduced demand for restaurants.

The regulations stipulate that delivery drivers working with these intermediaries must be paid a minimum of $17.96 per hour starting from July 12, 2021, with the amount increasing to $19.96 plus inflation adjustment by April 1, 2025. The regulations also state that the entire time drivers are logged into the agency app should count as working time, even if there are no deliveries to be made or if they reject orders. If drivers are logged into multiple apps simultaneously, each app operator must pay the full minimum fee.

The authority estimates that these regulations could increase the average cost of delivery by more than five dollars, potentially even more. Additionally, fraudulent delivery drivers are not allowed to decrease the intermediaries’ remuneration. Uber, Doordash, and Grubhub have filed lawsuits against the authority, arguing that the regulations will limit drivers’ freedom in choosing when and where to work and which orders to accept or reject. They also claim that the increased costs for consumers will lead to a decrease in demand, negatively impacting restaurants.

The authority’s regulations apply to all food delivery drivers, not just those working in restaurants. However, the delivery brokers argue that the regulations should not only be limited to specific apps or platforms. They also criticize the requirement to pay drivers for time not spent delivering orders or rejecting them. The brokers claim that the authority used biased and suggestive surveys to determine the regulations and that the underlying economic model is flawed.

The lawsuits filed against the authority request that the regulations be declared illegal and an injunction be issued to prevent their enforcement until the trial is completed. The arguments made in the lawsuits are similar, with the delivery brokers contending that the regulations are unfair and impractical. The legal proceedings are ongoing in the New York State Supreme Court.

In conclusion, the regulations surrounding minimum wage for self-employed food delivery workers in New York City have sparked controversy and legal action from delivery brokers such as Uber, Doordash, and Grubhub. These companies argue that the regulations are unacceptable and will lead to increased costs for consumers and negative effects on the restaurant industry. The legal proceedings regarding these regulations are currently underway.

Leave a Reply