New York City Minimum Wage for App Delivery Drivers

DoorDash, UberEats, GrubHub, the new way to get your meal, or make some money.  Whether you’re tired, busy, or just hungry, there are a multitude of choices at your fingertips, and all you must do is click, pay, and a driver will bring you your food.  Some drivers deliver food to make a little extra money, while others use it as their primary source of income.  Choosing your own hours and having the ability to accept or reject deliveries, based on pay and convenience, makes delivering food through an app an easy and flexible way to earn money.  However, because app delivery drivers are classified as independent contractors and not as employees, they are not currently entitled to a minimum wage or reimbursement for expenses.

The New York City Council passed Local Law 115 of 2021 that required the New York City Department of Consumer and Worker Protection (“DCWP”) to study the working conditions of third-party delivery drivers and subsequently promulgate rules establishing minimum wages for these employees.  The DCWP released a study pursuant to their duties under this local law in November 2022, finding that over 60,000 New Yorkers are delivering app purchased food any given week, and they are earning an average of $14.18 per hour, minus expense $11.12 per hour, minus tips $4.03 an hour.  Pursuant to this study, the DCWP proposed a minimum hourly wage for New York City app delivery drivers of $17.87 starting January 1, 2023, increasing to $23.82 by April 2023.  The DCWP is currently reviewing a substantial number of public comments, and while no rule has gone into effect thus far, they plan to release a decision this month.

The proposed minimum wage would apply to an app delivery driver’s “trip time,” the time between accepting the delivery and completing the delivery, but it would also apply to “on-call time,” the time when the driver is logged into the app waiting for a delivery.  While there is support for the proposed minimum wage, it has drawn criticism from the app companies and some delivery drivers.  The companies warn that a minimum wage will increase their overall costs, resulting in higher prices for consumers, and less flexibility for their drivers.  Those arguing against the proposal cite issues with the study DCWP released, notably the small survey response from 7% of app delivery drivers.  Many drivers themselves have submitted comments to the DCWP that if the rule applied to “on-call time,” it would affect their ability to work a flexible schedule, or work at all, citing fears that a minimum wage for “on-call time” would encourage food delivery apps to limit how many drivers are signed into the app and how many deliveries those drivers will be allowed to reject.

While app delivery drivers in New York City are not yet owed a minimum wage, if you think you’ve been underpaid by your employer, you should speak to an experienced New York employment law attorney.  To learn more or to schedule a consultation to discuss your situation, contact Borrelli & Associates, P.L.L.C. for a free consultation.