The New York City Department of Consumer and Worker Protection has announced implementing a minimum wage for food application delivery workers such as Uber Eats and Door Dash.
The city has promised an hourly wage of about $20 within two years. According to the city's news release, the average salary for the city's approximately 60,000 food delivery workers is about $7.09 per hour.
The wage increase will be implemented approximately 22 months after the June 11, 2023, announcement. The expansion will be drastic, with over $10 per hour added up to $17.96 starting on July 12, 2023. In April 2025, it will jump to at least $19.96 per hour. The earnings will adjust annually for inflation, and the wages will go above and beyond $20 per hour in the following years.
The press release stated that "Apps have the option to pay delivery workers per trip, per hour worked, or develop their own formulas, as long as their workers make the minimum pay rate of $19.96, on average."
New York City Mayor Eric Adams said, "Our delivery workers have consistently delivered for us now, we are delivering for them. This new minimum pay rate, up by almost $13.00/hour, will guarantee these workers and their families can earn a living, access greater economic stability, and help keep our city's legendary restaurant industry thriving."
However, the food delivery companies have shown some opposition and messaged their employees in April 2023 with concerns that this will limit work flexibility. GrubHub said in its message, "The rules put forth by the DCWP will make working conditions far worse for you. They will severely limit your flexibility. You may not be able to choose when and how you work." According to CNN, DoorDash said that the new decision was "extreme policy," and that the company may litigate against the city. Uber Eats reportedly claimed the town is not "being honest with delivery workers."
U.S. Senate Majority Leader Charles Schumer, who appeared at the city's press conference, called food delivery "the American dream" and said the wage increase is "another major victory in our fight to deliver justice for the city's delivery workers." New York State Senator Jessica Ramos called the delivery workers "frontline heroes" and added, "Throughout the darkest days of the pandemic, and today."
However, the city's comptroller, Brad Lander, called the decision "watered down" and said that his office calculated that a $12.69 hourly wage was more appropriate.
The city has also promised to work to convert vacant newsstands into shelters for delivery workers and charging stations for electric bicycles and phones.
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