CNN —
A judge has blocked New York City’s minimum wage law for food delivery workers from going into effect on July 12 until there is a hearing for a lawsuit filed by DoorDash and Grubhub against the city.
The law, announced last month, would increase pay for app delivery workers to $17.96 per hour before tips on July 12 and bump up the minimum wage to nearly $20 per hour in April 2025. Delivery worker pay would also be adjusted annually for inflation.
However, a lawsuit filed jointly by DoorDash and Grubhub to the Supreme Court of the State of New York alleges that the city’s new law would damage their businesses and harm delivery workers more than it would help them. Uber — the parent company of Uber Eats — filed a separate lawsuit against the city challenging the law.
New York City’s minimum wage law comes after online meal delivery services surged in popularity during the pandemic, and food delivery volumes still remain higher than pre-Covid levels.
On Friday, Judge Nicholas Moyne set oral arguments for the case for July 31, and blocked the law from going into effect until that hearing date.
In a statement, a spokesperson for DoorDash celebrated the judge’s order.
“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...
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