Food Delivery Apps Sue New York City Over Minimum Wage Law
Food delivery apps DoorDash, Uber Eats, and Grubhub have sued New York City over a new law that would require them to pay their drivers a minimum wage of $15 per hour. The law passed in December 2022 is set to go into effect on May 1, 2023.
The Law
The new law, the “App-Based Worker Protection Act,” would require food delivery apps to pay their drivers a minimum wage of $15 per hour, plus tips. The law would also require the apps to provide their drivers with paid sick leave and reimbursement for business expenses.
The food delivery apps argue that the new law is unconstitutional and will put them out of business. They say that the law is an overreach of government power and will force them to raise prices, hurting consumers.
The Response
New York City Mayor Eric Adams has defended the law, saying that it is necessary to protect the rights of food delivery drivers. He has said that the law will not raise prices for consumers and will benefit consumers by ensuring that food delivery drivers are paid a fair wage.
The lawsuit is still in its early stages, and it is unclear how the courts will rule. However, the case can potentially significantly impact the food delivery industry. If the law is upheld, food delivery apps could change their business models or even go out of business.
The news is “DoorDash, UberEats, and Grubhub sue New York City over a new $18 an hour minimum wage for delivery drivers.”