The new minimum wage for food delivery workers in New York
New York City has set a minimum wage for app food delivery drivers so that they can “put food on the plate in their household” when bringing food to others.
The minimum wage in the United States has not changed in almost 15 years. The last increase was made in 2009, making this the longest period without an increase since the base salary was created in 1938.
Currently, despite the fact that the minimum wage is $7.25 per hour, some states in the country, and even cities such as New York City (NYC), have established a higher minimum wage than the national one. The minimum wage in NYC is $15; however, a new mandate has raised the minimum wage for app-based food delivery drivers. Here are the details.
This is the new minimum wage for food delivery people in NYC
New York City has taken a step forward in the way popular platforms like Uber, Grubhub and DoorDash pay drivers. The mandate, effective July 12, will start at $17.96 per hour and gradually increase to $19.96 per hour, before tips, by April 1, 2025. In addition, it will adjust annually for inflation thereafter.
Currently, delivery drivers, estimated at more than 60,000 in New York City, are classified as independent contractors and not employees, so they are not entitled to minimum wage. In addition, they are also not reimbursed for expenses, such as the purchase of delivery bags. The drivers, mainly migrants, earn an average of $7.09 per hour or $11 after tip.
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“This is an American narrative and it’s an American story to come here and fight on behalf of what you believe is right,”, said New York City Mayor Eric Adams. “Our delivery workers have consistently delivered for us — now, we are delivering for them,” he added.
These are the new payment measures for food delivery people in NYC
Businesses will have two options for paying workers, either by the hour or by the trip, where workers are paid by the minute. The city included the two options in part to account for “multi-apping”, when workers work for more than one platform at the same time.
Businesses that choose the hourly route must pay workers $17.96 starting July 12, a rate that represents all the time a worker is logged in to the platform, including time spent waiting for job offers and travel time.
On the other hand, those who pay for travel time, from the time the worker accepts a delivery offer to the time the delivery is delivered, must pay at least approximately 50 cents per minute of travel time, not including tips.