Starting in July, food delivery workers in New York City will make nearly $18 an hour, as New York becomes the nation's first city to mandate a minimum wage for the app-based restaurant employees.
Delivery apps would be required to pay their workers a minimum of $17.96 per hour plus tips by July 12, rising to $19.96 per hour by 2025. After that, the pay will be indexed to inflation.
It's a significant increase from delivery workers' current pay of about $12 an hour, as calculated by the city's Department of Consumer and Worker Protection (DCWP).
"Today marks a historic moment in our city's history. New York City's more than 60,000 app delivery workers, who are essential to our city, will soon be guaranteed a minimum pay," Ligia Guallpa, executive director of the Workers' Justice Project, said at a press conference announcing the change.
How exactly apps decide to base their workers' wages is up to them, as long as they reach the minimum pay.
"Apps have the option to pay delivery workers per trip, per hour worked, or develop their own formulas, as long as their workers make the minimum pay rate of $19.96, on average," the mayor's office said, explaining the new rules.
Apps that only pay per trip must pay approximately 50 cents per minute of trip time; apps that pay delivery workers for the entire time they're logged in, including when they are waiting for an order, must pay approximately 30 cents per minute.
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