A group of food delivery companies is suing New York City to stop the Big Apple's new law requiring a $17.96-an-hour minimum wage for delivery workers starting next week.
Uber Technologies, DoorDash and New York City-based Relay Delivery all filed separate lawsuits against the city Thursday seeking a temporary restraining order to halt the pay rate requirement set to go into effect July 12. GrubHub also joined DoorDash's complaint.
(AP Photo/Mark Lennihan, File / AP Newsroom)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES INC. | 42.91 | +0.80 | +1.90% |
| DASH | DOORDASH INC. | 77.95 | +0.96 | +1.25% |
Uber Technologies
DoorDash Inc.
App-based delivery service workers are typically gig workers who operate as independent contractors, so minimum wage laws generally do not apply to them. But New York City aims to change that with the law that is the first of its kind in the U.S., and officials say the move will lift thousands of residents out of poverty.
WEST HOLLYWOOD MINIMUM WAGE SETS NEW RECORD, SPARKING CONCERN FOR BUSINESSES: ‘HOW DO YOU SURVIVE?’
Supporters of the law say delivery workers in the city earn an average of $11 an hour after expenses, far below the city's $15 minimum wage. If the new law requiring $17.96 for delivery workers moves forward, the rate will be raised to nearly $20 an hour in April 2025.
(Tayfun Coskun/Anadolu Agency via Getty Images / Getty Images)
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