New York Department of Consumer and Worker Protection (DCWP) passed a law that increases the minimum wage for food delivery workers to $17.96 per hour, plus tips. The amount will increase to $19.96 per hour by 2025.
As inflation soars, workers’ protection organizations are trying to increase and adjust the minimum wage to the inflation rate. Food delivery workers are among the lowest-paid workers in the US. Their minimum wage is now $15 per hour, but starting next month, they’ll earn $17.96 per hour. Delivery apps like Uber Eats, GrubHub, and DoorDash are mandated to pay the amount to workers.
DCWP argues that the delivery apps classify workers as contractors, which forces workers to pay higher taxes. The agency estimates that New York has over 60,000 food delivery workers earning an average of $7.09 per hour.
New York increases the food delivery workers’ minimum wage to $18 per hour
The $18 per hour minimum wage for food delivery workers takes effect from July 12. However, by 2025, the delivery apps should increase the pay to $19.96 per hour. While this amount is a good leap from the current $15, it’s still less than the $23.82 that proposed by DCWP in 2022.
As expected, food delivery apps like Uber Eats and GrubHub opposed the new law. An Uber spokesperson said, “The city is lying to delivery workers – they want apps to fund the $30 per hour wage by eliminating jobs and reducing tipping while forcing the remaining workers to deliver orders faster.”
A GrubHub spokesperson also argued that the DCWP’s final rule could have “serious adverse consequences for delivery workers in New York City.” The spokesperson added the city “chose not to partner with the industry on a solution that would have benefited all aspects of the gig economy.”
This is the second push from New York to enact a minimum wage for low-income workers following the legislation in 2022 that approved a $1.161 per mile and $0.529 per minute minimum wage for Uber and Lyft drivers.