A week before New York City’s app-based delivery workers were poised to see an hourly minimum wage increase, several tech companies fired a legal salvo that has temporarily delayed this change.
Doordash, GrubHub, Uber and Relay filed lawsuits in Manhattan state civil court on 6 July, alleging that a recently green-lighted $17.96 hourly minimum wage for app delivery workers – set to start on 12 July – would deal a blow to their business, also claiming it would harm this legion of workers. Under this law, the minimum wage would increase to some $19.96 for app delivery workers in 2025.
One day following the suits’ filing, Judge Nicholas W Moyne, who is presiding over these companies’ respective cases, granted their request for a preliminary injunction that blocks the new minimum wage from going into effect for at least two weeks. Moyne has scheduled arguments on this temporary restraining order for 31 July.
While Moyne’s decision on this is just one of many steps in what will likely be lengthy, complicated litigation, advocates nationwide are expected to keep a close eye on developments, as New York City’s labor regulations are often seen as a bellwether for feasibility elsewhere. If New York City’s efforts succeed, other municipalities might feel emboldened to enact similar regulations – but if they fail, concerns about onerous legal battles might deter officials elsewhere from following Gotham’s lead, advocates say.
“New York City is attempting to protect these workers and...
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