App-based companies that account for nearly all the food deliveries in the city filed suit Thursday to stop a new law raising worker wages — days before it is set to take effect.
DoorDash, Grubhub and Uber are aiming to stop the law that would, on July 12, require them to begin paying delivery workers $17.96 an hour and make New York the first major U.S. city to set pay requirements for its estimated 60,000 delivery workers.
The suits, filed separately in Manhattan Supreme Court, challenge a local law that would increase the hourly rate to $19.96 — before tips — by April 2025, a significant boost from the estimated $11 per hour delivery workers currently earn. The bump also takes into account their operating costs, including bikes, equipment and insurance.
In legal filings and statements to THE CITY, the companies say they are not opposed, in general, to efforts to boost workers’ wages. But the companies contend the law will also force them to pass on added costs to consumers and potentially drive away business — and claim bias from the city Department of Consumer and Worker Protection (DCWP), the agency that carried out the rulemaking process.
“For New York City consumers, it will mean — according to DCWP’s own analyses — a $5.18-per-order average increase in charges across the industry, representing a 15% increase on current costs,” lawyers for DoorDash and Grubhub charged in court papers. “For New York City restaurants and other merchants, it will mean losing access to...
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