Food delivery services Uber Eats, DoorDash and Grubhub are suing New York City over new minimum wage rules for workers. All three companies are seeking to block the new rules that could nearly triple the wages for app-based food delivery workers.
The NYC Department of Consumer and Worker Protection issued a rule on June 12 that would raise the minimum pay rate to $17.96 per hour on July 12, and then increase it to nearly $20 per hour by April 2025. Pay would also be adjusted annually for inflation.
DoorDash and Grubhub filed a joint lawsuit, while Uber Eats and New York-based Relay Delivery filed separate challenges. The companies claim the rule would result in higher costs for consumers and a decrease in the total number of deliveries.
Uber spokesperson Josh Gold said the law "must be paused before damaging restaurants, consumers and the couriers it purports to protect."
SEE MORE: Uber Eats to deploy up to 2,000 robots to deliver food
New York City Mayor Eric Adams has commended the rule change, saying it will help workers and their families "access greater economic stability" and help sustain the city's "thriving restaurant industry."
"Getting Stuff Done’ for working people is what this administration is all about, and that includes some of the hardest working New Yorkers: our delivery workers," Adams said at a press conference announcing the new rules. "Our delivery workers have consistently delivered for us — now, we are delivering for them."
The rules have also drawn...
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