![]() The lawsuits also claim the law is based on the unsupported assumption that restaurants make little profit from app-based orders, and that it imposes burdensome recordkeeping requirements. The city’s surveys of delivery workers were biased and designed to elicit responses that would justify a minimum wage, the companies said. The companies in the lawsuits filed on Thursday say city officials justified the law based on flawed studies and statistics. REUTERSĪpp-based delivery workers are usually treated as independent contractors rather than company employees, so general minimum wage laws do not apply to them. Uber, DoorDash, Grubhub and others claims the law is based on a misunderstanding of how the food delivery industry works. Supporters of the law, which is the first of its kind in the US, say it is needed because delivery workers in the city earn about $11 an hour on average after expenses, far below the city’s $15 minimum wage. ![]() “Delivery workers, like all workers, deserve fair pay for their labor, and we are disappointed that Uber, DoorDash, Grubhub, and Relay disagree,” Mayuga said in a statement. Vilda Vera Mayuga, head of the city’s Department of Consumer and Worker Protection, said the law will help lift thousands of workers out of poverty. Relay Delivery also filed a lawsuit in the same court claiming the law will put the New York-based company out of business unless it raises the fees it charges to restaurants. Uber drivers protest outside of the Uber offices in New York City earlier this year. That is with the nothing under 6 and at least 2 more over the miles. Uber and DoorDash in May both raised their annual earnings forecasts after beating quarterly revenue expectations, stemming from an increase in orders for food, groceries and convenience products. Time for a DoorDash Strike Day with these gas prices. Companies can decide whether to pay workers hourly or per delivery, which would be based on the hours workers are logged into the app.ĭelivery apps would need to increase the number of trips completed per hour to absorb the new labor costs, forcing them to shrink service areas and harming consumers and restaurants, the companies said. The law will require companies to pay delivery workers $17.96 an hour, which will rise to nearly $20 in April 2025. Grubhub Inc joined DoorDash in its lawsuit. The companies filed separate complaints in New York state court claiming the law, which takes effect July 12, is based on a misunderstanding of how the food delivery industry works. Uber Technologies, DoorDash and other app-based food delivery companies filed lawsuits on Thursday seeking to strike down New York City’s novel law setting a minimum wage for delivery workers. ![]() ![]() Uber and Lyft to pay $328M to settle accusations of ‘stealing earnings’ from NY drivers Redditors arent too sure about workers going on a strike against DoorDash, and some have strong opinions on the controversy. Wild video shows moment bear helps himself to family’s Taco Bell delivery Mom discovers perv messaging daughter, 16, through creepy Uber Eats chat: ‘Just be safe’ Are food delivery apps catfishing customers? Here’s how to tell ‘what they’re hiding’ ![]()
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