On Thursday, Uber Eats, DoorDash and Grubhub sued New York City in an attempt to block a landmark rule ensuring a minimum wage for delivery workers from going into effect on July 12.
The minimum pay rate, which would increase the pay for delivery workers to $17.96 an hour in July and nearly $20 an hour by April 2025, comes after a three-year campaign by Worker’s Justice Project (WJP) and Los Deliveristas Unidos, a worker-led movement to increase pay and improve working conditions for delivery workers in New York City.
“I feel fortunate to have been one of the people who fought for a better life for ourselves, and so that delivery workers can be finally recognized and be treated to a life with dignity,” Sergio Ajche, co-founder of Los Deliveristas Unidos, said when the rule increasing the pay for delivery workers was announced.
Because app-based delivery workers are classified as independent contractors rather than employees, they were not previously entitled to a minimum wage or reimbursements for expenses. Currently, delivery workers make an average of $7.09 an hour in a city before tips, where, according to CNBC, a yearly salary of $78,524 is needed to live comfortably in the metro area.
In September 2021, the New York City Council passed a law requiring the New York City Department of Consumer and Worker Protection (DCWP) to study and report on the pay and working conditions of New York City’s more than 60,000 delivery workers. After reviewing the findings of the study, the Adams administration announced the minimum pay rule — the first of its kind in the country.
“Our delivery workers have consistently delivered for us — now, we are delivering for them,” Mayor Adams said in a statement announcing the DCWP’s new rule. “This new minimum pay rate, up by almost $13.00/hour, will guarantee these workers and their families can earn a living, access greater economic stability, and help keep our city’s legendary restaurant industry thriving.”
The rule was celebrated by worker advocacy groups and delivery workers in the city, who have been organizing for better pay and working conditions for years.
“This rule will set the pay floor for all the essential deliveristas who work tirelessly — whether through a pandemic, a snowstorm or wildfire smoke — and who have been denied a living wage for far too long,” said Ligia Guallpa, executive director of WJP. “While there’s still work to do, a minimum pay rate for food delivery workers will transform the lives of thousands of families across the city and deliver long overdue justice for deliveristas.”
The lawsuit against the city, which alleges that the rule is unfair to the companies’ business models and is based on flawed calculations, is only the most recent attempt by Uber Eats, DoorDash and Grubhub to block the wage increase. Though the minimum pay standards were supposed to go into effect in January, the Adams administration caved to vocal pushback from the companies, reopening the rulemaking process and inviting public comment.
DCWP Commissioner Vilda Vera Mayuga has responded to the lawsuit by promising that the city remains committed to ensuring that delivery workers are paid fair wages.
“Delivery workers, like all workers, deserve fair pay for their labor, and we are disappointed that Uber, DoorDash, GrubHub, and Relay disagree. These workers brave thunderstorms, extreme heat events, and risk their lives to deliver for New Yorkers — and we remain committed to delivering for them,” Mayuga said. “The minimum pay rate will help uplift thousands of working New Yorkers and their families out of poverty. We look forward to the court’s decision and to apps beginning to pay these workers a dignified rate starting July 12.”
WJP and Los Deliveristas Unidos have condemned the lawsuit, calling it an unconscionable legal maneuver to prevent app-based delivery workers from earning a living wage.
“We will continue to organize, fight and defend the right to earn a fair and livable wage in our city,” the worker advocacy groups said in a statement.
Help us Prepare for Trump’s Day One
Trump is busy getting ready for Day One of his presidency – but so is Truthout.
Trump has made it no secret that he is planning a demolition-style attack on both specific communities and democracy as a whole, beginning on his first day in office. With over 25 executive orders and directives queued up for January 20, he’s promised to “launch the largest deportation program in American history,” roll back anti-discrimination protections for transgender students, and implement a “drill, drill, drill” approach to ramp up oil and gas extraction.
Organizations like Truthout are also being threatened by legislation like HR 9495, the “nonprofit killer bill” that would allow the Treasury Secretary to declare any nonprofit a “terrorist-supporting organization” and strip its tax-exempt status without due process. Progressive media like Truthout that has courageously focused on reporting on Israel’s genocide in Gaza are in the bill’s crosshairs.
As journalists, we have a responsibility to look at hard realities and communicate them to you. We hope that you, like us, can use this information to prepare for what’s to come.
And if you feel uncertain about what to do in the face of a second Trump administration, we invite you to be an indispensable part of Truthout’s preparations.
In addition to covering the widespread onslaught of draconian policy, we’re shoring up our resources for what might come next for progressive media: bad-faith lawsuits from far-right ghouls, legislation that seeks to strip us of our ability to receive tax-deductible donations, and further throttling of our reach on social media platforms owned by Trump’s sycophants.
We’re preparing right now for Trump’s Day One: building a brave coalition of movement media; reaching out to the activists, academics, and thinkers we trust to shine a light on the inner workings of authoritarianism; and planning to use journalism as a tool to equip movements to protect the people, lands, and principles most vulnerable to Trump’s destruction.
We’re asking all of our readers to start a monthly donation or make a one-time donation – as a commitment to stand with us on day one of Trump’s presidency, and every day after that, as we produce journalism that combats authoritarianism, censorship, injustice, and misinformation. You’re an essential part of our future – please join the movement by making a tax-deductible donation today.
If you have the means to make a substantial gift, please dig deep during this critical time!
With gratitude and resolve,
Maya, Negin, Saima, and Ziggy