Uber Eats, DoorDash and GrubHub are suing New York City in a bid to pump the brakes on a new law that sets minimum wage requirements for delivery workers.
The regulations, announced by Mayor Eric Adams in June, would have sharply increased workers’ take-home pay to at least $17.96 per hour plus tips by July 12, and at least $19.96 an hour by 2025. The wages were still well short of what advocates and elected leaders hoped when they passed a law mandating the minimum wage in 2021.
But Uber claimed in its lawsuit that the new rules would harm delivery workers, inflate costs for consumers by at least $6 on average and ultimately shrink take-out orders from restaurants by more than a third.
“The rule is bad policy that will eliminate work and reduce tipping while forcing the remaining couriers to deliver orders faster," said Uber spokesperson Josh Gold in a statement. "It must be paused before damaging restaurants, consumers and the couriers it purports to protect."
According to a report from the Department of Consumer and Worker Protection, most workers currently make well below the city’s minimum wage of $15 an hour — about $11.12 with tips, and as little as $4.03 an hour without tips.
The app and its peers, in separate lawsuits that were heard together this week, are seeking a temporary restraining order from state Supreme Court in Manhattan to stop the plan from taking effect.
City Comptroller Brad Lander , who led the charge for the minimum wage as a City Councilmember,...
Play video content Barry Keoghan is finally setting the record straight on those Sabrina Carpentercheating rumors ... and he says the whole thing was bogus. The actor popped up on the latest epis...