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New York City Sets New $17.96 Minimum Wage for App-Based Food Delivery Workers

New York City is the first jurisdiction to set a minimum pay rate for app-based food delivery workers.  Beginning July 12, 2023, the new law will protect the rights of more than 60,000 delivery workers by increasing their minimum hourly pay to $17.96.  This is a significant increase from the $7.09 per hour that delivery workers in the City currently make on average.

The new law requires app-based companies to pay their food delivery workers:

  1. At least $17.96 per hour, not including tips, for all time connected to the app, including time waiting for a trip to start and for offers to go through; or
  2. At least $0.50 per minute, not including tips, for when the company pays workers only for the time worked between accepting and completing a delivery job.

Regardless of the pay method the app-based company applies, the worker’s pay must be exact and equal at least the minimums the law requires.  Food delivery workers should review their apps for more information about their payment methods.

The new law also requires app-based companies working with food delivery workers to:

  1. pay delivery workers at least once per week and not charge a fee to processing payments unless workers request expedited payments;
  2. tell delivery workers how much the customer tips for each delivery, subject to some exceptions;
  3. tell delivery workers their total pay and tips for the previous day, subject to some exceptions;
  4. allow delivery workers to control their delivery routes, including by:
    • setting a maximum distance that they will travel to customers from the restaurant;
      • limiting which bridges or tunnels they will use; and
      • forbidding the app from requiring them to take on a trip that doesn’t comply with the limitations set in the app.
  1. tell delivery workers all route details beforethey accept a delivery;
  2. give the workers better access to restaurant bathrooms when they pick up orders, subject to some exceptions; and
  3. give delivery workers a free insulated food delivery bag after completing six deliveries.

Delivery workers qualify for these rights regardless of their immigration status or classification as “employee” or “independent contractor.”  Delivery workers who are not paid the minimums required by law can sue to recover their unpaid compensation in court or before the New York City Department of Consumer and Worker Protection.

If you are an app-based food delivery worker who did not receive all pay due, call Pechman Law Group PLLC for a free consultation and recover your unpaid compensation.

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