A New York state judge issued a temporary halt to a new city law scheduled to go into effect next week, which requires minimum wage payments for app-based food delivery workers.
New York State Supreme Court Justice Nicholas Moyne on Friday granted the temporary stay after lawyers for Uber Inc., DoorDash Inc., Grubhub Holdings Inc. and Relay Delivery argued they could be irreparably harmed by the law, set to go into effect July 12.
Moyne ruled the new law wouldn’t go into effect until lawyers for New York City and the app-delivery firms file formal papers with their arguments. The judge scheduled another hearing for July 31.
“The court is going to issue an order temporarily enjoining the statute from being effective pending the hearing,” Moyne said Friday, after hearing from lawyers for the four companies as well as a lawyer for the city. “The court is issuing this temporary restraining order based on a concern of the possibility of irreparable harm, and to preserve the status quo.”
The city’s new law which would increase pay for app delivery workers to $17.96 an hour before tips and implement a second raise to almost $20 an hour in April 2025. There are an estimated 60,000 delivery workers in New York who are paid about $11 an hour after tips and expenses, according to the city. The city’s minimum wage is $15 an hour.
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