New York City sets an $18 per hour minimum wage for food delivery workers
New York is about to become the first city in the United States to mandate a minimum wage for food delivery workers., delivery apps, including Uber Eats and GrubHub, will be required to pay their workers $17.96 per hour, plus tips, by July 12th. Then, by 2025, the city will mandate Uber, GrubHub and other players in the space pay delivery workers $19.96 per hour, with adjustments for inflation to follow thereafter.
The minimum wage in New York City is $15 per hour. By setting the hourly pay for delivery workers above that, the city’s Department of Consumer and Worker Protection agency notes it’s accounting for the fact Uber, GrubHub and DoorDash classify their delivery workers as contractors, who tend to pay higher taxes and often need to pay work-related expenses out of their own pocket.
. In March, the DCWP revised its estimate to account for “multi-apping,” a practice wherein some workers will deliver for more than one app at the same time. App companies, including Uber and GrubHub, pushed back against the regulation, and now that it’s set to finally go into effect, they’re still not happy about it.
“While we believe New York City had good intentions, we are disappointed in the DCWP’s final rule, which will have serious adverse consequences for delivery workers in New York City,” a GrubHub spokesperson said. “Unfortunately, New York City chose not to partner with the industry on a solution that would have benefited all aspects of the gig economy.”Great deals on consumer electronics delivered straight to your inbox, curated by Engadget’s editorial team.
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