This article was originally published on September 28 6:03pm EDT by THE CITY. Sign up here to get the latest stories from THE CITY delivered to you each morning.
By Claudia Irizarry Aponte, The City
App-based food delivery services must pay workers at least $17.96 an hour before tips in New York City, a Manhattan judge ruled Thursday, defeating legal efforts by giants Uber, DoorDash and Grubhub to stop the rule from going into effect.
The food delivery minimum wage stems from a local law that was supposed to kick off in January and whose implementation has been delayed by the city under fierce pressure from the app companies.
Only Relay, a smaller New York-based operation, is exempt under the decision from Manhattan Supreme Court Judge Nicholas Moyne, who granted the platform’s request for an injunction because it works directly with restaurants and already pays an hourly base rate. The decision allows the company to continue challenging the rule.
Because the app companies treat their workforce as independent contractors and not as employees, delivery cyclists and drivers are not entitled to either the federal or state guaranteed minimum wage. Food delivery workers on average earn $11 hourly before tips, according to estimates from the city.
Barring further legal challenges, the companies must begin paying delivery workers $17.96 an hour before tips beginning on the first day of each app’s next full pay period.
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