As Salon reported last week, a change in the minimum hourly wage for delivery drivers was set to go into effect in New York City was being hotly contested by DoorDash, Grubhub, Uber Eats and Relay, a locally-based delivery app. Now, as CNN reports, a judge has blocked this law from going into effect on the intended date of July 12 "until there is a hearing for a lawsuit filed by DoorDash and Grubhub against the city."
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Grubhub, Uber Eats and DoorDash sue New York City over imminent minimum wage increase
As previously reported, the change would increase the hourly pay rate to nearly $18 in advance of another planned minimum wage increase to around $20 in 2025. CNN states that "food delivery volumes still remain higher than pre-Covid levels." Judge Nicholas Moyne scheduled oral arguments to take place on July 31, essentially restricting the new law form going into effect until at least that date, as noted by CNN. The current minimum wage for NYC's delivery drivers is just over $7 per hour.
In a statement provided to CNN, a DoorDash spoken person said: "Today's decision is an early and promising victory for consumers, local businesses, and delivery workers across New York City, protecting them from the harmful and lasting impacts of an extreme earnings standard that resulted from a fundamentally broken process. We hope that this puts us on the path towards the city establishing a more reasonable earnings standard that reflects how these platforms are used by New...
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