New York State Supreme Court Justice Nicholas Moyne handed a win to three delivery food giants and one local company Friday after they sued to block a New York City law that would’ve raised the minimum wage for app-based delivery drivers—like Uber Eats or Postmates—to nearly $18 an hour, temporarily keeping the law from taking effect and delivering a blow to the burgeoning movement for expanding the workers’ employment protections.
Moyne ruled the law will not go into effect until after lawyers from the city and from the delivery companies—Uber Inc., DoorDash, GrubHub Holdings Inc. and Relay Delivery—make additional filings in the case, Bloomberg reported.
The companies argued in their lawsuit, filed Thursday, that they could be irreparably harmed by the law and that the added costs of higher wages could hurt opportunities for workers and pass on costs to customers and restaurants.
The law would have set the minimum wage for app-based workers at the higher of either $17.96 per hour or 50 cents every minute spent on a delivery, excluding tips.
Moyne scheduled the next hearing in the case for July 31.
“Delivery workers, like all workers, deserve fair pay for their labor, and we are disappointed that Uber, DoorDash, GrubHub, and Relay disagree,” New York City’s Department of Consumer and Worker Protection, which drafted the law, told multiple news organizations including the New York Times and the Wall Street Journal Thursday. “These workers...
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