New York City’s Department of Consumer and Worker Protection called for an increase in the minimum wage for app-based delivery workers.
“Delivery workers have delivered for New York time and again, including during the COVID-19 pandemic,” New York City Mayor Eric Adams said in a news release. “Now it’s time for New York to deliver for them.”
More than 60,000 people work for an app-based delivery service in the city, forming a very visible part of the city’s workforce. About 58% of them are between the ages of 18 and 34, while 91% of them do identify as Hispanic.
The department published a report that detailed the delivery workers’ low wages. Payment splits evenly from the app, including tips averaging at $14.18 but dropping to $11.12 after expenses.
Without tips, the average app-based delivery worker only earned $4.03 an hour.
The department proposed a minimum wage of $23.82 per hour. The wage breaks down to $19.86 for the base rate, $2.26 to cover workers’ expenses and $1.70 to account for the lack of workers’ compensation insurance.
The department also said it would adjust the wage for inflation every April 1 “to ensure that the rate keeps pace with the cost of living.”
The city would implement the proposed rate on April 1, 2025. The plan is based on the phasing in of the city’s $15 minimum wage between 2016 and 2018 for large employers.
The wage will be paid to delivery workers based on the time spent delivering an order, plus the time spent connecting to the app and...
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