In November, the city had proposed a minimum pay of $24 per hour. Many deliveristas – the community of app-based delivery workers – and labor rights activists argue the city is about six months late in ruling on a delivery worker minimum pay rate and that the revised set of rules is a reduction from the initially proposed pay formula. If the minimum wage is $14 per hour, a delivery that took 15 minutes door-to-door would earn a worker $4.20. In California, where Proposition 22 is the law of the land, companies are guaranteed to pay at least 120% of the local minimum wage for active miles. Paying per active minute is already written into how these companies do business in many locations. While none of the gig companies specified which method of payment they might follow, industry experts have their money on the $0.50 per active minute option. Active time happens from the moment a worker accepts a delivery to the moment they drop off the food. The other option involves apps paying $0.50 per minute of active time, exclusive of trips. This will increase with inflation next year to about $19.96 per hour. The first option requires companies to pay a worker at least $17.96 per hour, excluding tips, for time spent connected to the app, which includes time spent waiting for a gig. But it’s clear that this contentious issue will further divide the two camps.Ĭompanies that use delivery workers will get to choose between one of two minimum pay rate options outlined by the city. NYC’s delivery workers currently make about $7.09 an hour on average, according to a release from the city, so the new ruling is certainly a step up. Of course, there are those who say that perfect shouldn’t be the enemy of good, and plenty of delivery workers are in support of the ruling. App-based gig companies say the ruling will cause unintended consequences for workers, and a spokesperson for DoorDash told TechCrunch that “litigation isn’t off the table.” Many workers, labor rights activists and even the city’s comptroller say the minimum pay – just under $18 per hour – is not nearly enough to cover the costs of living in NYC or the costs of being a delivery driver. It should be a historic win for gig workers, but both delivery workers and companies are unhappy with it. New York City has established a new minimum wage for food delivery workers who deliver for platforms like Uber Eats, DoorDash, Grubhub and Relay.
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