A New York state appeals court ruled the validity of the law that regulates minimum wages for food delivery workers of $17.96 per hour.
It is not clear when the new minimum wage will take effect, he noted. Gothamist. The move represents a defeat for app companies like Uber Technologies, Grubhub, Relay Delivery and DoorDash, who filed separate lawsuits against New York City in July, stopping the law from taking effect. They alleged that it is based on a misunderstanding of how the food delivery industry works.
Gustavo Ajche The United Deliveristasthe delivery workers’ collective that has been fighting for better wages for years, said the group was happy with the decision but was hesitant to celebrate until the law was implemented.
Mayor Eric Adams did celebrate the decision of the appeals court. “Our delivery drivers have consistently delivered for us; Now, we are complying with them,” she said in a statement. “Today’s court decision is (…) a powerful tool to hold apps accountable. This minimum pay rate will ensure that our delivery drivers and their families can earn a living and “Keeping our city’s legendary restaurant industry strong.”
Uber spokesman Josh Gold said the company was disappointed by the decision but was glad to see that drivers will now be able to afford safer electric bikes after several fatal fires in NYC linked to the lithium-ion batteries found inside.
The law requires delivery drivers to be paid $17.96 per hour, a figure that will increase to almost $19.96 in April 2025. Companies can decide whether to pay drivers by the hour or by delivery.
The measure was signed into law in mid-June by the New York City Mayor’s Office, after months of demands from delivery workers asking for $23.82 per hour.. It is estimated that there are 60,000 delivery workers in New York who are paid about $11.12 an hour after tips and expenses, according to the city. The minimum wage in NYC is $15 an hour and will rise to $16 on January 1st.
Appeals Judge Nicholas Moyne halted the change in July while he deliberated. On September 28, he ruled against the companies, allowing the wage increase to be approved. But Uber immediately proceeded before the Appellate Division of the Supreme Court, the next highest court, again blocking the minimum wage from going into effect. On Wednesday, Judge Llinét M. Rosado denied that request, confirming the lower court’s decision without providing an explanation.
The projected increase has been celebrated by delivery drivers, but criticized by other workers. For example, delivery drivers will earn more than FDNY emergency medical technicians and paramedics starting in 2025, their union leaders warned.
