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Tuesday, April 28, 2026

Labor Pained: Tech Giants Sue City to Stop Minimum Wage for ... - Streetsblog USA

Not so fast — unless you’re a delivery worker.

The city’s first-in-the-nation minimum wage for delivery workers faced a new challenge in court on Thursday, just days before it was set to launch next week, with app delivery companies Uber, DoorDash, GrubHub, and Relay claiming in separate suits that the Department of Consumer and Worker Protection set the pay rates based on "fundamentally flawed and biased" data.

“The Department developed and assessed its new rules based on flawed data resulting from biased surveys and unrealistic assumptions that amount to little more than wishful thinking,” Uber attorney Karen Dunn wrote in the 102-page lawsuit.

Relay, which did not respond to a request for comment, filed its own lawsuit against the city, while DoorDash and GrubHub filed a joint lawsuit on the same day. The companies aim to strike down the minimum $17.96 per hour rate set to launch July 12, which will increase to $19.96 per hour on April 1, 2025.

The fate of the minimum wage rule — which the City Council required back in 2021 — now rests with Judge Nicholas Moyne of the New York State Supreme Court. Delivery workers today make just $7.09 per hour on average, excluding tips. Moyne could issue an injunction on the pay rate — effectively stopping it as he considers the merits of the case — but no immediate ruling was made as of Thursday evening.

The rule was supposed to take effect at the start of this year, but lobbying efforts from the tech industry delayed its...



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