On Thursday, Uber Eats, DoorDash, and Grubhub filed a lawsuit against the city of New York to stop its new minimum pay requirements for people who deliver meals.
In the upcoming years, the recently announced rules, which have been hailed as a national first, could roughly increase the average pay for app-based delivery employees.
On July 12, there will be a wage increase of $17.96 per hour. The average hourly wage for New York’s almost 60,000 delivery employees is currently $7.09, according to the city.
To prevent the modifications from taking effect on July 12, the food delivery firms are requesting a temporary restraining order at the state Supreme Court in Manhattan.
The businesses assert that the modifications would increase consumer costs. “The city’s entire rule depends on the false assumption that restaurants make no money on deliveries; it must be paused before damaging restaurants, consumers, and the couriers it purports to protect,” said Uber spokesperson Josh Gold in a prepared statement.
Together, DoorDash and Grubhub filed a complaint. Both Relay Delivery, based in New York, and Uber each filed their own lawsuits.
Officials from the city received an email requesting comments. The commissioner of New York City’s Department of Consumer and Worker Protection, Vilda Vera Mayuga, stated in a prepared statement emailed to The New York Times that delivery workers “deserve fair pay for their labor.
“These people risk their lives to deliver for New Yorkers, and we remain committed to delivering for them,” she added.
“These workers brave thunderstorms, terrible heat events, and extreme cold events.
The new regulation gives food delivery services some latitude in how they pay new hires.
Apps are free to decide how they want to pay delivery workers, as long as earnings match the required pay rate, the city has stated.
Payment options include per trip, per hour worked, or another policy developed by the company.