Unforeseen Delays: An Update on New York City’s Delivery Drivers Minimum Wage Law

With New York City’s Department of Consumer and Worker Protection’s (“DCWP”) law increasing the minimum wage for delivery workers from $7.09 per hour to $17.96 per hour initially set to take effect Wednesday, July 12, 2023, app-based food delivery companies such as Uber Technologies Inc. (“Uber”), Doordash Inc. (“Doordash”) and others filed lawsuits on Thursday, July 6, 2023, to strike down the novel law.

In case you were not able to read our original blog outlining DCWP’s potential new and game-changing law that may positively impact the lives of New York’s thousands of delivery drivers, the proposed law would require app-based food delivery companies to increase their delivery drivers’ current minimum wage of $7.09 per hour to $17.96 per hour, then subsequently increasing to $18.96 per hour in April 2024, and finally increasing to $19.96 per hour in April 2025.

This law would be the first of its kind in the United States, and Mayor Eric Adams propounds that it would provide delivery drivers with the compensation they deserve.  Despite this, companies such as Uber and Doordash disagree and have filed separate lawsuits to impede the law’s passing, citing that while they are not opposed to increasing the drivers’ wages, the law will force them to pass on the added costs to consumers, potentially driving away business.  Moreover, the companies state that the DCWP is biased against them as the law singles out app-based food delivery platforms while failing to address grocery-delivery platforms.

As of now, the judge presiding over the company’s respective cases has granted their request for a preliminary injunction that blocks the new minimum wage from going into effect for at least another two additional weeks, with arguments on this temporary restraining order beginning on July 31,2023 and the decision remains pending.

Further, in a statement, the representative for Doordash stated that they and others are suing the City “to send a clear and unmistakable message that bad policies cannot go unchallenged, and we will not stand by and let these harmful impacts go unchecked for the communities we serve.”

On the other hand, Vilda Vera Mayuga, the DWCP commissioner, expressed disappointment that companies such as Uber and Doordash disagree that their delivery drivers “deserve fair pay for their labor” as well as further clarifying that the increase in the “minimum pay rate will uplift thousands of working New Yorkers and their families out of poverty.”

The importance of this law stretches far beyond the boundaries of New York City since, whether this bill gets put into place isn’t just important to New Yorkers, it is also essential to workers across the country.  With New York City being the first municipality to propose such a law like this, if New York City is prohibited from doing so, other municipalities may not attempt to put the same or a similar law in place due to the potential expenses connected to the possible litigation.  On the other hand, if this bill was to pass, other cities are likely to follow suit and ensure that the hundreds of thousands of Americans who work as delivery drivers for these app-based food delivery companies are being paid a livable wage.  As such, we will keep you updated as this potentially historic litigation continues.

If you have questions regarding how the delay of this law may impact you and your current pay rate, please feel free to contact Borrelli & Associates, P.L.L.C., to schedule a free consultation through one of our websites, www.employmentlawyernewyork.com, www.516abogado.com, or any of our phone numbers: (516) 248-5550, (516) ABOGADO, or (212) 679-5000.