New York City's food app delivery workers are set to earn $17.96 an hour from June 12, about $10 higher than the current wages. This makes New York the first U.S. city to establish a minimum wage for delivery workers in the gig economy.
Mayor Eric Adams, who announced the decision, also said that the minimum earnings per hour would be hiked to nearly $20 by April 2025.
“Our delivery workers have consistently delivered for us — now, we are delivering for them,” New York City Mayor Eric Adams said in a statement. “This new minimum pay rate, up by almost $13.00/hour, will guarantee these workers and their families can earn a living, access greater economic stability, and help keep our city’s legendary restaurant industry thriving.”
This has brought a sense of relief and hope for the 60,000 food delivery workers that were making just about $7.09 an hour. The city also added that the pay will be adjusted to inflation. These workers are associated with apps like DoorDash, GrubHub and Uber Eats, which have become very popular since the pandemic.
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According to CNN, delivery apps will have the freedom to determine the payment method for delivery workers based on the new minimum rate. As long as the workers meet the minimum requirement, apps can opt to pay them per trip, per hour worked, or using their own calculation method.
The release also said apps that pay workers for the time they are waiting for a trip and their trip time must pay at least $0.30 a minute once the changes start in 2023. Apps choosing to pay once a driver accepts a delivery trip will have to ensure at least $0.50 fees a minute. The rates do not include tips.
This decision by the city is a result of constant discussion between city officials, app companies and delivery workers. According to a report by News 12 Brooklyn, these delivery workers have to pay for their cars, e-bikes and scooters to do their job, as well as pay for health insurance and cellphone services.
The decision was supposed to go into effect in January this year but the Adams administration reversed course earlier this year, opening up the public rule-making process once again following intense campaigning from several of the major companies impacted, The City reported.
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