The law will require companies to pay delivery workers US$17.96 an hour, rising to nearly US$20 in April 2025.
NEW YORK: A New York state judge on Thursday rejected a bid by Uber Technologies Inc, DoorDash Inc and Grubhub Inc to block New York City’s novel law setting a minimum wage for app-based delivery workers.
Uber, DoorDash, Grubhub Inc and a smaller food delivery service, Relay Delivery Inc, claim the law will force them to shrink service areas to absorb the new labour costs, ultimately hitting customers and restaurants. “Today’s ruling further ensures beloved local restaurants, many of which are also small businesses, will continue to be able to rely on Relay to help them make ends meet,” Cohen said.
“Delivery workers, like all workers, deserve fair pay for their labor and to be able to support themselves and their loved ones,” said Vilda Vera Mayuga, commissioner of the city’s Department of Consumer and Worker Protection, which is responsible for enforcing the law. Uber and the other companies filed separate lawsuits in July, which were consolidated. They say city officials based the minimum wage law based on flawed studies and statistics.
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