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New York City creates new minimum wage for food delivery workers
New York City recently passed a new minimum wage for food delivery drivers who work for apps like Uber Eats, DoorDash, Grubhub, and Relay. The minimum wage is under $18 per hour. However, both the delivery workers and companies are unhappy with it.
Minimum wage rate options
The new ruling requires companies to pay a worker at least $17.96 per hour or $0.50 per minute of active time (excluding trips). The latter option is already integrated into how gig companies operate in various locations. In California, Proposition 22 requires gig companies to pay drivers at least 120% of the local minimum wage for every active mile.
Too little too late
Many delivery workers and labor rights activists believe that the new minimum pay rate is insufficient to bear the costs of living in NYC. The city originally proposed a minimum pay of $24 per hour, but instead settled for $18.
Working hard or hardly working
The new ruling could force companies to reduce app access for workers who do not accept every gig, limiting platform access for part-time workers, or increasing the workload for workers that stay on the platform.
Implications for workers’ rights
Dubal, a professor of law at the University of California College of Law, San Francisco, stated that the new minimum wage is simply not enough for the dangerous and precarious work of delivery drivers. While the $18 per hour pay rate seems to be a step forward for workers, the high cost of living in NYC and the hazardous work delivery drivers face suggests more can be done.
FAQs
What is the new minimum wage for app-based delivery drivers in NYC?
App-based delivery drivers must be paid at least $17.96 per hour for time spent connected to the app (excluding tips) or $0.50 per minute of active time (excluding trips). The latter option is already used in many locations.
How do gig companies plan to pay workers?
Delivery companies that use delivery drivers have options to comply with NYC’s new minimum wage requirement. This includes either paying a worker $17.96 per hour or $0.50 per minute of active time (excluding trips).
Is the minimum wage rate reliable enough to cover the cost of living for delivery drivers in NYC?
Many workers, labor rights activists, and even the City Comptroller argue that $18 per hour is not enough to cover the high cost of living in NYC. According to NYC Comptroller Brad Lander, the new minimum wage rate will ultimately be around $13 per hour after expenses.
What are the implications of the new minimum wage law for delivery workers?
The new minimum wage ruling could have unintended consequences for drivers. It may cause gig companies to limit app access for workers who do not accept every gig, leading to an increase in the workload for delivery drivers.
What are the potential risks of the new ruling?
App-based delivery companies may reduce platform access for part-time workers, and gig companies may track workers’ locations more efficiently to reduce double-time payments.
Conclusion
While NYC’s new pay rate for food delivery drivers may seem like a historic win for gig workers, the amount is still insufficient to cover the high costs of living and the work’s dangers. While the gig economy has provided opportunities for flexible work, labor activists and workers continue to call for better protections and standards.
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