New York City Sets New Minimum Wage for Food Delivery Workers
Perhaps more than any other American city, New York relies on a growing army of delivery workers who have braved successive waves of Covid, extreme weather and toxic air as remote work has reshaped the economy. Now, they’re getting a raise.
Starting July 12, New York City’s app-based delivery workers must be paid at least $17.96 an hour, not including tips — the first such minimum pay-rate in the country for an industry that exploded in popularity during the pandemic. The increase, which will go into effect nearly two years after the City Council passed a set of bills designed to improve conditions for the workers, was announced by Mayor Eric Adams over the weekend.
Critics say the rule does not go far enough to compensate the workers, who must absorb a range of expenses as independent contractors, including frequent injuries on the job. And industry groups argue that the added costs could throttle opportunities for some workers and pass on costs to consumers and restaurants, which already pay high fees to use the apps.
The city’s more than 60,000 delivery workers, who courier takeout, groceries and other goods, are paid an average of about $11 an hour, after factoring in tips and expenses, less than New York’s $15 minimum wage, according to an analysis by the city. They also cover their own health insurance, business expenses and additional taxes.
Source: The New York Times
