New Minimum Wage for Delivery Workers Upheld By Appeals Court

By Arthur Schwartz

Mayor Adams with Los Deliveeristas Unidos. Photo courtesy of Office of the Mayor.

Some of the people we rely on the most in our post-COVID world are the most exploited. Looks like that is about to end. On November 30, the Appellate Division of the New York State Supreme Court rejected a challenge by UberEats, DoorDash and GrubHub, and denied a request to stay their ruling pending a possible appeal to the State Court of Appeals.

Under the new minimum pay law, passed by the NYC Council and signed into law last spring by Mayor Eric Adams, tech companies must pay delivery workers in the city at least $17.96 per hour plus tips, with another increase to at least $19.96 an hour by 2025. Before the new minimum wage, delivery workers were making about $11.12 with tips and as little as $4.03 an hour without tips, according to a report by the City.

Mayor Adams celebrated the decision as a win for delivery workers in a statement on November 29. “Our delivery workers have consistently delivered for us — now, we are delivering for them…Today’s court decision is yet another promise made and promise kept by our administration on behalf of working New Yorkers, and it is a powerful tool to hold apps accountable. This minimum pay rate will guarantee our delivery workers and their families can earn a living and keep our city’s legendary restaurant industry going strong.”

The regulations were first announced by Adams in June, initially to go into effect by July 12. But just days before it was set to go into effect, UberEats, DoorDash and GrubHub filed lawsuits against the city seeking a temporary restraining order from the state Supreme Court in Manhattan to stop the plan. Uber and the other gig companies said that they will be forced to pass on the cost of the higher wages to consumers by raising prices. They argue that the city’s modeling did not correctly calculate the degree to which these higher prices will harm local restaurants. And they said that the new system will work to deliverers’ disadvantage because to control costs, the company will have to strictly monitor how much time workers spend online on the apps but not actually doing deliveries.

Judge Nicholas Moyne paused the change when the case was first filed. On Sept. 28, he ruled against the delivery giants, allowing the wage increase to go through. Uber immediately appealed to the Appellate Division of the Supreme Court, the next highest court, and got a temporary stay blocking the minimum wage from taking effect. Judge Llinét M. Rosado then denied that request, upholding the lower court’s decision without explanation. It is unclear when the new minimum wage will take effect.

New York City Comptroller Brad Lander said the ruling was a “monumental” win for the workers. “As essential workers with grueling conditions, they deserve a pay standard that is not dictated by the whims of apps companies or by how many food orders they can achieve in an hour,” Lander said. “These workers deserve secure pay that allows them to put food on their own tables while delivering food to our doors.”

Gustavo Ajche with Los Deliveristas Unidos, the delivery worker collective that has been fighting for better wages for years, said the group was happy with the decision, but hesitant to celebrate until they see the law implemented. “It’s a really good day for us,” Ajche said. “It’s another step, but we’re not going to say, ‘We won, we got this.’ We want to see the money in all the delivery workers pockets. It’s something that we’ve been waiting months for, but today is another step forward in our fight.” As Aiche pointed out, the appeal still awaits a ruling by the full court.

Last October Mayor Adams and Senator Charles Schumer announced a first-of-its-kind hub program for New York City’s 65,000 delivery workers that uses existing infrastructure, like vacant city newsstands, to provide a place to rest and recharge. Street Deliveristas Hubs create a place for delivery workers to seek shelter from the elements and charge their electric bicycles and cell phones. Through a $1 million federal grant, this pilot program has been renovating and transforming underutilized structures on city properties. A portion of the federal grant has also been used to help renovate a worker center in Williamsburg for deliveristas. Many of the city’s newest migrants have joined the deliverista ranks.