New York City’s app-based food delivery workers should be paid at least $23.82 an hour plus tips by 2025, an amount that takes into account their costs of operating, the city Department of Consumer and Worker Protection proposed via public notice Wednesday morning.
The highly anticipated pay scale is mandated by a 2021 local law that requires a minimum wage for workers using apps such as DoorDash and Uber Eats. As proposed, the pay minimum would start $17.87 on Jan. 1, 2023, and increase to $23.82 by April 1, 2025.
Because app-based delivery workers, currently estimated to number 60,000, are classified as independent contractors and not employees, these workers are not currently entitled to a minimum wage. They also do not get reimbursed for expenses, such as purchasing insulated delivery bags.
Once the full $23.82 hourly rate is implemented, it will include a $19.86 base rate – matching existing minimum pay standards for the city’s ride-hail drivers – and $2.26 to cover expenses such as safety equipment, and $1.70 to reflect the absence of workers’ compensation insurance. The city estimates that delivery workers currently earn $11.12 an hour including tips after expenses, according to a draft copy of the pay study obtained by THE CITY.
The proposed rate would ultimately put $9 an hour in delivery workers’ pockets over what they typically earn now. New York joins Seattle, which set a minimum wage earlier this year, to go into effect at the same time as New York’s.
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