A recent ruling by a New York state judge has temporarily halted a law that would have increased the minimum wage for food delivery workers in New York City. The law, which would have raised the minimum wage to nearly $18 per hour, was set to go into effect on July 12. However, four food delivery services, including DoorDash, Grubhub, Uber, and Relay Delivery, filed lawsuits to block the law temporarily.
New York State Supreme Court Judge Nicholas Moyne issued a preliminary injunction, putting the law on hold. The judge stated that the law will remain on hold until additional filings are made by the plaintiffs. A hearing is scheduled for July 31 to further discuss the matter and decide whether the preliminary injunction should continue to be in place during the legal proceedings.
The minimum wage law was signed by New York City Mayor Eric Adams in June and aimed to provide better support for delivery drivers. Under the law, food delivery workers would have been entitled to receive at least $17.96 per hour in 2023, with subsequent increases to $18.96 per hour in April 2024 and $19.96 per hour in April 2025. This would have been a significant increase from the current average wage of $7.09 per hour for over 60,000 food delivery workers in the city.
Food delivery workers who operate through app-based platforms are generally classified as independent contractors rather than employees, exempting them from minimum wage laws. In their joint lawsuit, DoorDash and Grubhub argued that the new law was unlawful, arbitrary, and capricious. They claimed that the minimum wage requirement was based on biased and unreliable survey data that would negatively impact delivery drivers and result in a significant increase in costs for customers.
Uber and Relay Delivery filed separate lawsuits, contending that the minimum wage increase would force them out of business unless they raised the fees charged to restaurants. All four food delivery companies expressed satisfaction with the judge’s decision to halt the implementation of the minimum wage law.
Despite the companies’ objections, Vilda Vera Mayuga, the commissioner of NYC’s Department of Consumer and Worker Protection, expressed disappointment with the preliminary injunction. She argued that the current pay rates for food delivery workers are well below the minimum wage and that the pay raise would help lift thousands of working New Yorkers and their families out of poverty.
With the hearing scheduled for July 31, both sides await a final decision on whether the minimum wage law will be upheld or permanently blocked. For now, the law remains on hold, leaving the future of minimum wage for food delivery workers in New York City uncertain.
