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.