NEW YORK — A new law raising the minimum wage for food delivery drivers in New York City hit a speed bump Thursday when the parent companies of Uber Eats, Doordash and other food delivery apps filed lawsuits contesting it in New York state court.
The law, set to go into effect next week, would require companies to pay drivers at least $17.96 per hour or an equivalent rate per delivery.
Deliveristas, as they’re called in the city, currently earn about $11 per hour on average, several dollars below the city’s current minimum wage of $15.
In a statement, Doordash Inc., which is being joined in its lawsuit by GrubHub, called the law “extreme” and “bad policy.”
The company argued that the law fundamentally misunderstands the nature of food delivery service in the city, and that the Department of Consumer and Worker Protection, the agency responsible for setting the minimum pay rate, used “dubious methodology,” and “leading questions to push workers to respond in ways the agency wanted.”
Relay Delivery Inc, another food delivery app based in New York City, also filed a lawsuit claiming that the new minimum wage requirement for delivery workers would put the company out of business.
Los Deliveristas Unidos, the group that lobbied to get the rate increase slammed the app companies for their greed.
“It’s unconscionable that multi-billion dollar companies would now turn around and continue to do everything in their power to prevent New York City’s more than 65,000 app-based delivery workers from earning a livable wage,” Los Deliversitas Unidos said on Twitter.
The DCWP Commissioner Vilda Vera Mayuga pushed back against tech company claims and said she would let the debate play out in court.
“Delivery workers, like all workers, deserve fair pay for their labor,” she said. “These workers brave thunderstorms, extreme heat events, and risk their lives to deliver for New Yorkers— and we remain committed to delivering for them...We look forward to the court’s decision and to apps beginning to pay these workers a dignified rate starting July 12th.”
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