For the first time ever, app-based restaurant delivery workers in New York City – engaged as independent contractors – are set to make a minimum wage. The nation’s first-of-its-kind law is set to have a massive impact, as it will affect approximately 65,000 delivery workers when it takes effect on July 12. The law treads new ground by providing delivery workers with workplace protections typically provided to employees and not independent contractors. Here is what third-party restaurant delivery services and third-party courier services need to know.

What is Required Under the New Law?

Under the new law, effective July 12, app-based based food delivery services must pay their deliver workers a minimum wage. The delivery app companies can meet the pay requirement through two methods:

• Flat Rate: Apps that pay for all the time a worker is connected to the app (i.e., time spent waiting for trip offers and trip time) must pay delivery workers at least $17.96 per hour, which amounts to approximately 30 cents per minute not including tips. In addition to an adjustment for inflation each year, this rate will increase to $18.96 per hour on April 1, 2024, and $19.96 per hour on April 1, 2025.
• Per Delivery: Apps that only pay for trip time (i.e., time from accepting a delivery offer to dropping off the delivery) must pay at least approximately 50 cents per minute, not including tips. On April 1, 2024, this rate will reach approximately 53 cents per minute and 55 cents per minute...

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