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NEW MINIMUM PAY RATES FOR NYC APP-BASED FOOD DELIVERY WORKERS ARE DELAYED

New York City was ordered by a judge to temporarily delay new minimum pay
standards for app-based food delivery workers

By
The Associated Press
July 7, 2023, 6:41 PM ET
• 2 min read


FILE - In this March 16, 2020 file photo, a delivery worker rides his bicycle
along a path on the West Side Highway in New York. New York City was ordered
Friday, July 7, 2023, to temporarily delay new minimum pay standards for food
delivery workers after being sued by Uber Eats, DoorDash and Grubhub. (AP
Photo/John Minchillo, File)The Associated Press

NEW YORK -- A judge Friday ordered New York City to temporarily delay new
minimum pay standards for app-based food delivery workers, a day after being
sued by Uber Eats, DoorDash and Grubhub.

City officials recently announced plans to substantially increase earnings for
those workers in the coming years to provide them with more financial stability.
The law was set to take effect July 12 with an initial increased pay rate of
$17.96 an hour.



But food delivery services DoorDash, Grubhub and Uber, along with New York-based
Relay Delivery, sued Thursday in state Supreme Court in Manhattan. The companies
claimed the city's rule-making process was flawed and that higher costs would be
passed along to consumers.

Judge Nicholas Moyne on Friday ordered a temporary delay on enacting the new
standard pending a hearing on July 31.

The food delivery giants praised the order.

“We are pleased with the judge’s decision today to delay implementation of a
rule that, if allowed to stand, will have serious adverse consequences for
delivery partners, consumers and independent businesses," Grubhub said in a
prepared statement.

DoorDash said in a statement that the company hoped the decision “puts us on the
path towards the city establishing a more reasonable earnings standard that
reflects how these platforms are used by New Yorkers.”

An Uber spokesperson said the company wants to work with the city and others "to
figure out a minimum pay rule that doesn’t have devastating consequences for
couriers, consumers and restaurants.”



Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga said
she was “extremely disappointed” with the delay.

“These apps currently pay workers far below the minimum wage, and this pay rate
would help lift thousands of working New Yorkers and their families out of
poverty,” she said in a statement. "We look forward to a quick decision so that
the dignified pay rate that workers deserve to earn is not delayed any more than
necessary.”

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