NYC minimum wage for delivery drivers upheld by appeals court
Uber Technologies Inc and other companies to New York City's novel minimum wage law for app-based delivery workers, allowing it to take effect.
The Manhattan-based Appellate Division, First Department on Thursday denied appeals by Uber, DoorDash Inc and Grubhub Inc after a state judge rejected their claims that the law unfairly targets their food delivery services.
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Offering CollegeCourseWebsiteIIM KozhikodeIIMK Senior Management ProgrammeVisitIndian School of BusinessISB Digital TransformationVisitIndian School of BusinessISB Professional Certificate in Product ManagementVisit The court in September had temporarily blocked the law while it considered the appeals.
The law will require companies to pay delivery workers $17.96 an hour, which will rise to nearly $20 in April 2025. Companies can decide whether to pay workers hourly or per delivery, which would be based on the hours workers log into the app.
Uber, DoorDash, Grubhub Inc and a smaller food delivery service, Relay Delivery Inc, claim the law will force them to shrink service areas so deliveries do not take as long, ultimately hitting customers and restaurants.
In September, state judge Nicholas Moyne had allowed the law to take effect but blocked the city from enforcing it against Relay pending the outcome of the case. The judge said that unlike the other companies, Relay cannot immediately raise the fees it charges to restaurants and needs time to renegotiate its contracts.
The appeals court on Thursday denied the companies' appeal without explanation.
DoorDash in a statement said the court had «chosen to ignore the harmful consequences such a misguided minimum pay rule will cause, and failed to
