NYC proposes $23.82 minimum wage for food delivery workers

NEW YORK (PIX11) – New York City is proposing a $23.82 per hour minimum wage for food delivery workers for app-based companies such as Uber Eats, Grubhub and DoorDash.

The proposed minimum wage, which would need to be finalized after a public hearing, would be $17.87 when it first takes effect and increase to $23.82 when it’s fully phased-in by April 2025.

There are more than 60,000 app-based food delivery workers in New York City who are not entitled to a minimum wage or benefits because they are classified as independent contractors instead of employees.

They are paid $7.09 per hour on average, excluding tips, according to the New York City Department of Consumer and Worker Protection.

The hourly wage would be paid to delivery workers based on their time spent delivering as well as on-call time, meaning the time spent connected to the app waiting for a delivery offer, according to the Department of Consumer and Worker Protection.

“Delivery workers have delivered for New York time and again, including during the COVID-19 pandemic — now it’s time for New York to deliver for them,” Mayor Eric Adams said in a statement. “This new proposed minimum pay rate would help ensure a fairer pay for delivery workers for third-party apps, providing more stability for 60,000 workers across our city.”

The public hearing on the proposal is scheduled for Dec. 16, 2022, at 11 a.m.

PIX11 News reached out to Uber Eats, Grubhub, DoorDash and the New York State Restaurant Association about the proposal. Representatives with DoorDash and Uber shared concerns about New York City's minimum wage proposal.

A DoorDash spokesperson provided the following statement:

“Dashing allows so many across New York City to earn when, where, and how often they choose. Unfortunately, the proposed rule does not appropriately account for this flexibility or that Dashers are able to choose which deliveries they accept or reject. Failing to address this could significantly increase the costs of delivery, reducing orders for local businesses and harming the very delivery workers it intends to support. We will continue to work with policymakers on a reasonable approach that better reflects the way Dashers use the platform for flexible earning opportunities and keeps these services within reach for businesses and consumers.”

Uber spokeswoman Freddi Goldstein said in a statement:

“The day after repealing a rule that was universally hated by TLC drivers, the city is proposing a nearly identical one for delivery workers that would force apps to block couriers from working when and where they want.”