Doordash, Grubhub and Uber sue New York City over minimum wage law
source link: https://edition.cnn.com/2023/07/06/business/doordash-grubhub-uber-sue-new-york-minimum-wage-law/index.html
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
Doordash, Grubhub and Uber sue New York City over minimum wage law
Food delivery platforms DoorDash, Grubhub and Uber Eats are challenging in court New York City’s new minimum wage law for app food delivery workers.
All three companies sued the city, maintaining that the law would hurt delivery workers more than help them. DoorDash and Grubhub filed a suit jointly to the Supreme Court of the State of New York, while Uber — the parent company of Uber Eats — filed its lawsuit separately.
In a statement to CNN, DoorDash called the law “bad policy,” though it said it was not opposed to a minimum wage for delivery workers.
“We will not stand by and let the harmful impacts of this earnings standard on New York City customers, merchants, and the delivery workers it was intended to support go unchecked. We – and others – clearly and repeatedly warned the city that using such a flawed process to underpin its rulemaking would have lasting and harmful impacts for all New Yorkers who use these platforms,” DoorDash said.
The law, which was announced last month, would increase pay for app delivery workers to $17.96 per hour before tips on July 12, and raise pay again to nearly $20 per hour in April 2025. Pay would be adjusted annually for inflation.
The DoorDash and Grubhub lawsuit alleges that the new regulation is legally flawed because it targets only meal-delivery services and not grocery-delivery services. It also argues the regulation is legally flawed because it would compel the companies to pay workers for hours that they are available to take orders while logged into the delivery apps, even if they don’t actually make any deliveries.
The DoorDash and Grubhub lawsuit claims the New York City Department of Consumer and Worker Protection’s analysis of the regulation would add an average of $5.18 per order.
The city’s new law comes after online meal delivery services spiked in popularity during the pandemic; delivery orders remain higher than pre-Covid levels.
According to a news release from New York City, food delivery workers currently make $7.09 per hour, on average. There are more than 60,000 food delivery workers working in the city, according to the local government.
In a statement announcing the law, New York City Mayor Eric Adams said the rule would “guarantee these workers and their families can earn a living, access greater economic stability, and help keep our city’s legendary restaurant industry thriving.”
“Our delivery workers have consistently delivered for us — now, we are delivering for them,” he said.
However, major food delivery apps have been united in their opposition to the law.
Josh Gold, Uber’s senior director for public affairs, said the law “must be paused before damaging restaurants, consumers and the couriers it purports to protect.”
A Grubhub spokesperson said that the company “commends the City’s attention to this issue, but we cannot support a solution that has such unintended implications for those who rely on food delivery.”
Recommend
-
15
Gig EconomyHow I make $1,000 a week delivering food for DoorDash, GrubHub, and PostmatesHow to master the delivery apps
-
17
TechHow delivery apps changed the restaurant businessPublished Wed, Mar 31 20219:00 AM EDTVIDEO16:16...
-
11
DoorDash, Uber Eats and Grubhub sue NYC over restaurant fee limitsThe city made the pandemic measures permanent last month.
-
8
DoorDash, Grubhub, and Uber Eats sue New York City over restaurant fee caps NYC imposed the caps as a temporary measure last year, making them permanent in August
-
17
DoorDash, Grubhub and Uber sue NYC over delivery fee limitsKey PointsDelivery man riding by a posted sign with safety instructions at Bushwick Avenue. NYPD closed major streets to vehicular tr...
-
11
TechDoorDash sues New York City over new data-sharing lawPublished Wed, Sep 15 202110:01 AM EDTUpdated Wed, Sep 15 20213:54 PM EDT...
-
8
New York City Will Require Uber and Lyft To Go 100 Percent Electric by 2030
-
5
Uber, DoorDash Sue NYC Over Minimum Wage Law Want to read Slash...
-
11
DoorDash, UberEats, and Grubhub sue New Yo...
-
5
Uber, DoorDash Sue NYC to Stop Delivery Drivers From Getting a Minimum WageThe app-based delivery companies are contesting a new law would require them to pay their workers $17.96 per hour in the city.
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK