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REUTERS/Arnd Wiegmann//File Photo Acquire Licensing RightsSept 28 (Reuters) - A New York state judge on Thursday rejected a bid by Uber Technologies Inc (UBER.N), DoorDash Inc and Grubhub Inc to block New York City's novel law setting a minimum wage for app-based delivery workers. The law will require companies to pay delivery workers $17.96 an hour, which will rise to nearly $20 in April 2025. App-based delivery workers are usually treated as independent contractors rather than company employees, so general minimum wage laws do not apply to them. They say city officials based the minimum wage law based on flawed studies and statistics. The companies allege the city's surveys of delivery workers were biased and designed to elicit responses that would justify a minimum wage.
Persons: Arnd, Nicholas Moyne, Moyne, Uber, Daniel Wiessner, Chris Reese, Aurora Ellis Organizations: REUTERS, Uber Technologies, DoorDash Inc, Grubhub Inc, New York, Companies, New York City Department of Consumer and Worker, Thomson Locations: Davos, Switzerland, York, Moyne, United States, Albany , New York
CNN —A judge has blocked New York City’s minimum wage law for food delivery workers from going into effect on July 12 until there is a hearing for a lawsuit filed by DoorDash and Grubhub against the city. The law, announced last month, would increase pay for app delivery workers to $17.96 per hour before tips on July 12 and bump up the minimum wage to nearly $20 per hour in April 2025. Uber — the parent company of Uber Eats — filed a separate lawsuit against the city challenging the law. New York City’s minimum wage law comes after online meal delivery services surged in popularity during the pandemic, and food delivery volumes still remain higher than pre-Covid levels. We look forward to the court’s decision and to apps beginning to pay these workers a dignified rate.”According to a news release from the city, Manhattan’s 60,000 food delivery workers currently make $7.09 per hour, on average.
Persons: CNN —, DoorDash, Uber, , Judge Nicholas Moyne, , ” Grubhub, Vilda Vera Mayuga Organizations: CNN, Uber, DoorDash, New Yorkers, New York’s Department of Consumer and Worker, New York City Department of Consumer Locations: York, New York, New York City, New
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