Uber, Grubhub, Doordash must now pay New York City workers at least $18 h/r after judge rules they have no standing to have new law thrown out

Uber, Grubhub, and Doordash have been unsuccessful in their attempts to keep cheating people out of their money. This week a judge ruled that the companies 2nd attempt to block the city’s law is invalid.

Food delivery workers in New York City are set to get a raise. Beginning February 2024, delivery apps in the area are now required to pay at least $18 h/r or meet at least one other payment scheme to satisfy new minimum wage laws.

The Lowdown

Beginning February 2024, the apps will be required to to pay at least $18 h/r or pay up at about $0.50 a minute while on each trip. This makes New York City the first city in the nation to have a guaranteed wage for delivery drivers. Many on social media welcomed the news given how much delivery apps have boomed in the past few years.

In the ruling, it was also stated that the minimum wage must apply before tips are accounted for. The scheme takes effect on the first day of each app’s next full pay period. Relay a similar delivery service in the area is exempt from the ruling because they already pay an hourly rate.

Associate Justice Llinét M. Rosado ruled Thursday that the apps had no standing in their second effort to have the law overturned.

So how does it work?

According to the ruling, so long as the companies meet the minimum wage threshold before tips it can happen one of three ways: per trip, per hour worked, or come up with their own designed formula that meets the same requirements as the first two. It does not matter how they do it so long as the appropriate pay is getting to workers according to the ruling.

How does the per trip pay work?

According to the ruling, the 2023 per trip rate is .50 and will go up to .53 in 2024 and .55 in April 2025 plus inflation adjustments.

The formal pay must equal $17.96 ($18 in most cases) and by 2025 it will go up to about $19.96 that would be required per hour. The apps have already warned they may change the rules on people so folks should pay attention going into the new year.

Fact: There are about 65,000 delivery workers in New York City mostly undocumented immigrants who are paid less than $8 h/r after expenses and the like. That’s a shame New York these people get us through the winter when we don’t want to go outside.