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Judge blocks gig economy companies' challenge to NYC delivery worker minimum wage law

  • A New York judge rejected a legal challenge by Uber, DoorDash and Grubhub seeking to block a new NYC law requiring a minimum wage for app-based delivery workers.
  • The law mandates companies pay delivery workers $17.96 per hour to start, rising to nearly $20 per hour by 2025.
  • Judge ruled that the minimum wage law can take effect while litigation continues, apart from Relay Delivery which was temporarily exempted.
  • Delivery platforms argued the law would raise costs for customers, harm restaurants, and reduce worker flexibility, claims the judge rejected.
  • New York City has about 60,000 food delivery workers currently earning an average of $11 per hour before expenses and tips.
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