Part of the Food Policy Snapshot Series
Policy name: Minimum Pay for App-Based Restaurant Delivery Workers
Overview: New York City Mayor Eric Adams has announced a new minimum pay rate for app-based restaurant delivery workers.
Location: New York City
Population: 7.9 million total population; 65,000 food delivery workers
Food policy category: Food services
Program goals: To increase the economic stability of app-based restaurant delivery workers in order to enhance their overall quality of life.
How it works: Beginning on July 12, 2023, app-based restaurant delivery workers will receive a minimum of $17.96 per hour, not including tips. The pay will increase to $19.86 per hour by 2025 and will be adjusted annually for economic inflation.
Delivery companies will be able to determine how their workers are paid, whether by the hour, by trip, or some other formula, as long as they receive the designated minimum hourly pay rate. For apps that compensate workers for the time spent waiting for a delivery and their trip time, the minimum pay rate equates to approximately $0.30 per minute in 2023. Apps that pay workers only after they have accepted a delivery will be paying approximately $0.50 per minute in 2023.
Progress to date: In September 2021, the New York City Council passed Local Law 115, which required the Department of Consumer and Worker Protection (DCWP) to study the pay and working conditions of app-based food delivery workers and to establish a minimum pay rate based...
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