Technology

Judge pauses pay hike for NYC delivery workers

Couriers’ $18 hourly wage is on hold after lawsuits from DoorDash, Grubhub and Uber Eats prompted a judge to stay the rule. A hearing is scheduled for later this month.
Delivery apps' lawsuits drew a swift response. | Photo: Shutterstock

A New York State Supreme Court Judge put a pause on a New York City law that would have raised food-delivery workers’ hourly wages to nearly $18 this week. 

The stay from Judge Nicholas Moyne on Friday was in response to lawsuits filed just a day earlier by Grubhub, DoorDash and Uber Eats, which want to put a stop to the new rule. 

Under the law, couriers would have started earning $17.96 an hour starting Wednesday, $18.96 next year and $19.96 in 2025. The city estimated that third-party delivery workers currently average $7.09 an hour before tips and said the pay hike represents a fair wage. 

In their lawsuits, the delivery providers argued that the law is unfair and the result of a flawed rule-making process. They warned that it will ultimately hurt couriers, customers and restaurants because it will force the companies to raise their prices and place restrictions on drivers.

Both sides will have a chance to make their case on July 31 at a hearing set by Moyne.

There is some recent precedent for the dispute. Earlier this year, a judge blocked New York City’s plan to raise rideshare drivers’ pay after Uber sued. The rule would have increased drivers’ wages by 7.42% per minute and 23.93% per mile. The city ultimately implemented a 2.25% increase.

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