NYC Pitches Almost $24 Minimum Wage for UberEats, DoorDash Workers by 2025
New York City is proposing a minimum pay rate of $23.82 an hour by 2025 for app-based food restaurant delivery workers.
New York City is proposing a minimum pay rate of $23.82 an hour by 2025 for app-based food restaurant delivery workers, in another step to improve conditions for the independent contractors.
The proposal by the New York City Department of Consumer and Worker Protection would force companies including Uber Technologies Inc., DoorDash Inc. and Just Eat Takeaway.com NV’s Grubhub to set a minimum pay rate for the delivery workers of $17.87, and to increase it in three years to almost $24, according to the department.
The proposal will be the subject of public hearing scheduled for Dec. 16.
The more than 60,000 app-based food delivery workers in the city are classified as independent contractors and don’t have access to benefits such as minimum wage or overtime. That’s prompted a push from worker advocates to bolster protections over the last year.
The delivery workers are paid $7.09 per hour, excluding tips, according to the DCWP. With tips but before expenses, they they’re paid an average of $14.18.
The proposal follows a set of bills passed in September 2021 by city lawmakers to grant sweeping protections to food couriers, including requiring restaurants to let the workers use their bathroom, and guaranteeing they receive full tips.
“Delivery workers have delivered for New York time and again, including during the Covid-19 pandemic — now it’s time for New York to deliver for them,” Mayor Eric Adams said in a statement. “This new proposed minimum pay rate would help ensure a fairer pay for delivery workers for third-party apps.”
Company Opposition
Delivery companies disagreed with the proposed minimum wage.
DoorDash, which estimates that its couriers earn almost $29 per hour, on average, argues that the proposed rule would hinder workers’ ability to choose which deliveries they accept or reject, a DoorDash spokesman said in a statement.
“Failing to address this could significantly increase the costs of delivery, reducing orders for local businesses and harming the very delivery workers it intends to support,” the spokesman said.
DoorDash contends that because delivery drivers often work across multiple apps, the proposed rule would mean that pay would be determined starting when a worker opens the app rather than when a worker accepts an order. Because of that, the wage floor would require platforms to pay for delivery workers who logged on to its app, even if they are completing orders for another company, DoorDash said.
Uber also opposes the plan.
“The day after repealing a rule that was universally hated by TLC drivers, the city is proposing a nearly identical one for delivery workers that would force apps to block couriers from working when and where they want,” an Uber spokeswoman said, referring to the Taxi and Limousine Commission’s decision to hike yellow cab and ride-share drivers’ wages on Wednesday.
New York City is proposing a minimum pay rate of $23.82 an hour by 2025 for app-based food restaurant delivery workers.
New York City is proposing a minimum pay rate of $23.82 an hour by 2025 for app-based food restaurant delivery workers, in another step to improve conditions for the independent contractors.
The proposal by the New York City Department of Consumer and Worker Protection would force companies including Uber Technologies Inc., DoorDash Inc. and Just Eat Takeaway.com NV’s Grubhub to set a minimum pay rate for the delivery workers of $17.87, and to increase it in three years to almost $24, according to the department.
The proposal will be the subject of public hearing scheduled for Dec. 16.
The more than 60,000 app-based food delivery workers in the city are classified as independent contractors and don’t have access to benefits such as minimum wage or overtime. That’s prompted a push from worker advocates to bolster protections over the last year.
The delivery workers are paid $7.09 per hour, excluding tips, according to the DCWP. With tips but before expenses, they they’re paid an average of $14.18.
The proposal follows a set of bills passed in September 2021 by city lawmakers to grant sweeping protections to food couriers, including requiring restaurants to let the workers use their bathroom, and guaranteeing they receive full tips.
“Delivery workers have delivered for New York time and again, including during the Covid-19 pandemic — now it’s time for New York to deliver for them,” Mayor Eric Adams said in a statement. “This new proposed minimum pay rate would help ensure a fairer pay for delivery workers for third-party apps.”
Company Opposition
Delivery companies disagreed with the proposed minimum wage.
DoorDash, which estimates that its couriers earn almost $29 per hour, on average, argues that the proposed rule would hinder workers’ ability to choose which deliveries they accept or reject, a DoorDash spokesman said in a statement.
“Failing to address this could significantly increase the costs of delivery, reducing orders for local businesses and harming the very delivery workers it intends to support,” the spokesman said.
DoorDash contends that because delivery drivers often work across multiple apps, the proposed rule would mean that pay would be determined starting when a worker opens the app rather than when a worker accepts an order. Because of that, the wage floor would require platforms to pay for delivery workers who logged on to its app, even if they are completing orders for another company, DoorDash said.
Uber also opposes the plan.
“The day after repealing a rule that was universally hated by TLC drivers, the city is proposing a nearly identical one for delivery workers that would force apps to block couriers from working when and where they want,” an Uber spokeswoman said, referring to the Taxi and Limousine Commission’s decision to hike yellow cab and ride-share drivers’ wages on Wednesday.
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