On July 12, 2023, New York City Mayor Eric Adams and the New York City Department of Consumer and Worker Protection (DCWP) announced a new minimum wage of $17.96 per hour for food delivery workers. The new wage will be effective immediately and will increase to $19.96 per hour on April 1, 2025.
This is a significant victory for food delivery gig workers, who have long been fighting for a living wage. The previous minimum wage for food delivery workers was just $7.09 per hour, which was far below the minimum wage for other workers in the city.
The new minimum wage is expected to benefit more than 60,000 food delivery workers in New York City. It is also expected to have a ripple effect on other cities and states, as they consider similar policies.
The food delivery companies, such as DoorDash, Uber Eats, and Grubhub, have opposed the new minimum wage, arguing that it will lead to job losses. However, supporters of the new wage argue that it is necessary to ensure that food delivery workers are paid a fair wage for their work.
In addition to the minimum wage increase, the new law also requires food delivery companies to provide workers with certain benefits, such as paid sick leave and access to workers’ compensation. The law also prohibits companies from taking tips from workers.
The big question remains unanswered; how companies are supposed to provide a minimum wage, paid sick leave, and workers’ compensation to independent contractors. This law puts companies in direct contradiction with well established case law and legal precedent that independent contractors, at a minimum, be free from direction and control, be at risk for profit or loss, NOT be covered by workers’ compensation insurance, and have the freedom to work for others.
Take it from the people in the know; this law will soon apply to all independent delivery drivers in NYC and other large metropolitan areas. Is your business ready?
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