In a significant move by New York City’s leadership, Mayor Eric Adams has introduced a mandate to establish a minimum wage for those employed as restaurant delivery workers via digital platforms. The directive faces legal hurdles as companies such as Uber, DoorDash, and GrubHub contest its legitimacy, stalling its activation.

This development is the culmination of a two year advocacy effort led by Los Deliveristas Unidos, a group championing fair compensation and improved working conditions for delivery personnel. Despite their efforts, the newly proposed wage framework has met resistance, with DoorDash and GrubHub jointly filing a lawsuit that labels the mandate as “unlawful, arbitrary, and capricious,” citing an increase in cost per order by an estimated $5.18 based on the Department of Consumer and Worker Protection (DCWP)’s projections.

Uber has launched its own legal objection, with company representative Josh Gold cautioning the policy could have detrimental effects not only the delivery ecosystem but also restaurants and customers, possibly leading to fewer job opportunities and diminished incentives for tipping.

The law, which was poised for enactment in the early part of the summer season, now encounters a delay due to a state judge’s issuance of a temporary restraining order, thus pausing its implementation amid the ongoing legal proceedings.

DCWP Commissioner Vilda Vera Mayuga expressed her dismay at the tech apps for obstructing the new wage standard, emphasizing that the policy aims to elevate the earnings of thousands of New Yorkers and their families to above the poverty line. Presently, according to New York City officials, food delivery workers make an average of $7.09 per hour.

The planned wage policy stipulates that delivery workers should receive a minimum hourly rate of $17.96, excluding tips, with an incremental increase projected to reach $19.86 by 2025 and adjustments aligned with inflation after that. This policy shift follows New York City Council’s adoption of Local Law 115 in September 2021 and a subsequent DCWP investigation into the earnings and work conditions of app based delivery workers.

Ligia Guallpa, who heads the Worker’s Justice Project, the umbrella organization for Los Deliveristas Unidos, remarks that the city is pioneering in setting a wage foundation for a segment of the workforce historically omitted from minimum wage statutes and broader labor protections.

The proposed wage policy grants delivery companies the discretion to compensate their employees through various methods, provided they meet the mandated hourly pay threshold. This could include set hourly wages, per-delivery payments, or alternative compensation models.

With the policy, Mayor Adams intends to bolster the economic security of delivery workers who have remained essential, particularly since the onset of the pandemic, underscoring the city’s commitment to ensuring these workers and their families can secure a viable livelihood.

As the city continues to navigate the legal landscape and public debate regarding the wage policy, the Workers Justice Project and Los Deliveristas Unidos persist in their efforts to inform workers about the forthcoming changes and to repurpose newsstands into resting hubs for delivery personnel.

Commissioner Mayuga looks ahead to a swift judicial resolution, advocating for the prompt establishment of just remuneration for delivery workers, who have long awaited such recognition.