New York Acting Supreme Court Justice Nicholas Moyne rejected a bid by Uber, DoorDash and Grubhub to block a bill requiring a minimum wage for app-based delivery workers.

A first-of-its kind law requiring a minimum wage for app-based delivery workers will take effect after a judge rejected the companies’ bid to block it.

Uber, DoorDash and Grubhub won’t be able to get out of paying minimum wage to their New York City delivery workers after all, following a judge’s decision to reject their bid to skirt the city’s new law. The upcoming law, which is still pending due to the companies’ ongoing lawsuit, aims to secure better wage protections for app-based workers. Once the suit settles, third-party delivery providers will have to pay delivery workers a minimum wage of roughly $18 per hour before tips, and keep up with the yearly increases, Reuters reports.

The amount, which will increase April 1 of every year, is slightly higher than the city’s standard minimum wage, taking into account the additional expenses gig workers face. At the moment, food delivery workers make an estimated $7-$11 per hour on average.

  • @[email protected]
    5•1 year ago

    If I take everything you say as true at face value. Then the business was a shitty idea. The owners of the company who have gambled away the VC money should be the ones on hook for it, not the customers.

    It is the employer’s responsibility to ensure their workers get paid. Period.

    • BraveSirZaphod
      2•1 year ago

      That’s precisely my point. It’s ultimately a shitty business idea, and will probably eventually fail.

      I don’t really understand what you mean by being on the hook for it. Investors will ultimately lose quite a lot of money, workers will lose their jobs, and customers will endure the horror of walking or driving a bit to grab food.