![]() In California, where Proposition 22 is the law of the land, companies are guaranteed to pay at least 120% of the local minimum wage for active miles. Paying per active minute is already written into how these companies do business in many locations. Uber, DoorDash and Grubhub haven’t specified which method of payment they might follow, but it’s possible they’d focus on the $0.50 per active minute option. Active time happens from the moment a worker accepts a delivery to the moment they drop off the food. The other option involves apps paying $0.50 per minute of active time, exclusive of trips. The first option requires companies to pay a worker at least $17.96 per hour, excluding tips, for time spent connected to the app, which includes time spent waiting for a gig. Per NYC’s mandate, companies that use delivery workers will choose between one of two minimum pay rate options outlined by the city. “We are grateful for Justice Moyne’s well-reasoned opinion that Relay is likely to succeed with its argument that the rule did not take its unique business model into consideration.” Today’s decision protects those couriers and allows Relay, a local NYC startup, to continue to find opportunities for even more delivery workers to benefit with high earnings,” said Relay’s lawyer Adam Cohen in a statement. “Relay’s couriers have average earnings of more than $30 per hour. Relay, a smaller NYC-based delivery platform that operates as a courier service for restaurants, also sued the city and was granted an injunction. This law will put thousands of New Yorkers out of work and force the remaining couriers to compete against each other to deliver orders faster,” said Josh Gold, an Uber spokesperson. “The City continues to lie to workers and the public. They also argued it would hurt delivery workers by forcing companies to track time spent on the apps without making deliveries. The three delivery apps argued that a higher wage mandate would ultimately harm the end consumer, who would suffer from price hikes. ![]() “The judge’s ruling is another reminder that workers will always win.”ĭelivery workers are considered to be independent contractors and therefore do not benefit from employee protections like minimum wage guarantee, workers’ compensation or paid sick leave. “Multi-billion dollar companies cannot profit off the backs of immigrant workers while paying them pennies in New York City and get away with it,” Ligia Guallpa, the director of the New York-based Workers Justice Project, which helped lead the advocacy efforts for a minimum wage, said in a statement. ![]() Acting Supreme Court Justice Nicholas Moyne today ruled against the companies, making way for the minimum pay rate that will reach $19.96 per hour in 2024 to account for inflation. They were granted a temporary injunction at the time. The delivery apps sued the city in July, when the city’s 65,000 delivery workers would have begun seeing hourly payments, in an attempt to block the standard from being implemented. ![]() In a blow to Uber, DoorDash and Grubhub, a New York judge on Thursday ruled to allow the implementation of the minimum pay rate of $18 per hour for New York City’s food delivery workers.
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