New York City has become the first major U.S. city to establish a minimum pay-rate for app-based restaurant delivery workers. The new law goes into effect July 12, 2023.
The rise in popularity of food delivery apps over recent years, driven in part by heightened demand for food delivery during the COVID-19 pandemic, has brought increased attention to food delivery workers and their working conditions.
While delivery workers have expressed concerns about many challenges affecting their livelihoods, including violence on the streets, bike theft, and extreme weather conditions, there is one issue that has remained at the forefront of worker advocacy: pay.
App-based delivery workers are classified as independent contractors, and not employees. They are not entitled to the minimum wage and must pay for their own health insurance and business expenses. Many delivery workers believe that pay below the minimum wage is inadequate, particularly in light of high out-of-pocket expenses for transportation and delivery gear, and they are thus pushing for higher pay.
Ongoing debates among elected officials, delivery app companies, and delivery workers over pay standards for app-based delivery workers led to Local Law 115, passed in 2021. Local Law 115 required the Department of Consumer and Worker Protection (DCWP) to evaluate the pay and working conditions of app-based delivery workers and to set a minimum pay-rate for their work by January 1, 2023....
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