New York (EFE).- The mobile applications DoorDash, Uber Eats and GrubHub, which dominate the food delivery sector, sued the city of New York in an attempt to stop the implementation of the law that comes into force on July 12 and sets the minimum wage for food delivery workers at $17.96 an hour.
The regulation, which would have an impact on some 60,000 people in the city, known as “deliveristas” contemplates an increase in wages up to $19.96 an hour as of April 1, 2025, according to what was established by the Mayor’s Office.
Conflicting positions on the minimum wage
In a joint statement, DoorDash, which sued along with GrubHub, explains the lawsuit, noting that the city announced, on June 11, “an extreme income standard” for food delivery workers.
That translated into “bad policy that was the result of an even worse process: carried out arbitrarily, relied on dubious methodology, and failed to comply with the law passed by the Council (local legislature), however misguided.” that it was initially”.
It also indicates that one of the objectives of the lawsuit is to “send a clear and unequivocal message that bad policies cannot go unnoticed” and ensure that they will not sit idly by and that “these harmful impacts go unchecked for the communities we serve.”
The apps consider drivers to be independent contractors and not employees, so they don’t receive minimum wage, expense reimbursement, overtime or other benefits like health insurance, and are paid an average of $7.09 per hour, without tips. , which led this group, a large number of them from Latin America, to fight to improve their working conditions.
After the City Council approved a series of laws to regulate the industry and guarantee protection, there was a public hearing, -which the Council ordered- convened by the Department of Consumer and Worker Protection to set the minimum wage, which the “deliverists” were asking off $23.82 an hour.
Although the approval is below that figure, they also showed their optimism about the improvement in their working conditions.
The applications would pass the costs on to the users
App companies say the new law will force them to raise rates for consumers and limit the number of people who work for these companies.
“These workers are facing electrical storms, extreme heat events, and risking their lives to deliver for New Yorkers, and we remain committed to delivering for them,” said the Department of Consumer and Worker Protection charged with implementing the new law. and monitor compliance, as a reaction to the demand.
DoorDash and GrubHub jointly filed the suit in the city’s Supreme Court while Eats and Relay each filed separately, according to the Wall Street Journal.