On Friday, July 7, 2023, a judge ordered a temporary halt to New York City’s plan to raise the minimum wage for app-based food delivery workers.
The law, which was passed in June, was scheduled to go into effect on July 12, 2023.
The new law would require restaurant delivery apps to pay their food delivery workers $17.96 per hour as of July 12. The pay rate would increase to $19.96 per hour by April 1, 2025, and be adjusted annually for inflation. The new minimum wage rates would not include tips.
On Thursday, July 6, app-based food delivery companies including DoorDash, Grubhub and Uber sued New York City to stop the new law from going into effect.
The judge’s order places the new rule on hold until at least after a court hearing scheduled for July 31.
The delay in the new minimum wage may only be temporary. App-based food delivery companies and the restaurants that use them should review their pay practices and procedures in the event that the court allows the law to proceed.
If you have any questions or concerns about minimum wage rates for any types of workers under federal, state, city or local laws, please contact Chaim Book at cbook@booklawllp.com, Sheryl Galler at SGaller@booklawllp.com, or Nadav Zamir at NZamir@booklawllp.com.
Disclaimer: The information provided in this blog post is for general knowledge purposes only and should not be considered legal advice. For specific guidance tailored to your situation, it is advisable to consult with a qualified employment law professional.
