In a national first, New York City will implement a minimum pay rate for app-based food delivery workers.
Grubhub, which noted it believes the city “had good intentions,” also expressed disappointment and similar concerns over the rule. Meanwhile, DoorDash said it may pursue legal action.
With the $17.96 minimum rate taking effect next month, apps that pay workers for all the time they are on call will be required to pay about 30 cents per minute, not including tips. For apps that only compensate for trip time, that rate will be about 50 cents per minute, not including tips, in 2023 — and is expected to rise to 53 cents per minute in April 2024 and 55 cents per minute in April 2025, plus inflation adjustments.
The study was published last year, and this week's final rule was established after a public comment period. The minimum wage takes into account that app-based workers are as independent contractors — who often must pay out-of-pocket for expenses and do not have workers’ compensation insurance or paid time off.
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