On Thursday, a judge ruled against three major delivery companies who had contested the rule, saying that New York City regulators may move forward and boost the minimum pay for app-based food delivery employees.
With effect from October 1, the new minimum wage regulation would oblige the platforms to pay the workers an initial rate of around $18 per hour, rising to $20 per hour by 2025. Its goal is to force internet businesses to better compensate gig workers. According to the city’s assessment, delivery employees currently make an average wage of $11 per hour.
Different business model
Nearly two years after the City Council passed a historic package of laws aimed at enhancing couriers’ working conditions, the raise was scheduled to start in July.
However, the three businesses—Uber, DoorDash, and Grubhub—filed applications for temporary restraining orders in the State Supreme Court in Manhattan to prevent the rise from taking effect days before it was scheduled to. Relay, a smaller meal delivery service with roots in New York City, followed suit. The judge, Nicholas Moyne, put the decision on hold while he thought about it.
He decided against the three bigger delivery businesses on Thursday and permitted the pay hike to take effect, but he also declared that Relay, which has a different business model, ought to be given a preliminary injunction so that it can keep contesting the increase.
Doordash, Uber Eats, and Grubhub sue New York City over new minimum wage law
Not established a likelihood of success on the merits
In his ruling, Justice Moyne stated that the petitioners “have not established a likelihood of success on the merits” of their claim. It’s conceivable that the three bigger businesses will appeal his ruling.
However, the three businesses—Uber, DoorDash, and Grubhub—filed applications for temporary restraining orders in the State Supreme Court in Manhattan to prevent the rise from taking effect days before it was scheduled to. Relay, a smaller meal delivery service with roots in New York City, followed suit. The judge, Nicholas Moyne, put the decision on hold while he thought about it.
He decided against the three bigger delivery businesses on Thursday and permitted the pay hike to take effect, but he also declared that Relay, which has a different business model, ought to be given a preliminary injunction so that it can keep contesting the increase.
In his ruling, Justice Moyne stated that the petitioners “have not established a likelihood of success on the merits” of their claim.
