New city laws to boost pay for app-based delivery drivers are causing significant ripples in the gig economy. Companies have opposed local rules that raise the minimum wage for their drivers.
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In Seattle and New York City, laws intended to bring delivery drivers up to minimum wage will also change how they are paid. Rather than earning per trip, they will be compensated on a time and distance basis or at a rate every time they are offered a job.
The rules are already eliciting challenges from companies like DoorDash, Instacart, Grubhub and Uber in the form of legal action, lobbying and public campaigns against the actions.
In Minneapolis, a similar law was vetoed last year by Mayor Jacob Frey, but city council members have vowed to take up the issue again this month. Colorado, Hawaii, Massachusetts and Washington have seen worker protection bills raised in their legislatures, while drivers in Chicago continue to organize for minimum wage protections.
In November 2023, New York City became the first major U.S. city to implement a minimum pay rate for app-based restaurant delivery workers. Delivery platform companies must pay delivery workers the minimum pay rate of at least $17.96 per hour.
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