A win for delivery employees and workers will soon take effect, and this will compel the likes of Uber, DoorDash, GrubHub, and more to pay the workers an $18 minimum wage per hour. On top of that, these employees are set to see increasing rates per year, as the soon-to-pass law requires these companies to add $1 more annually to fall on their workers' wallets.
This sweeping law is set in New York City, previously seeing a case that blocks the decision, but ultimately goes in the way of the delivery employees.
Uber, DoorDash, GrubHub Compelled to Pay $18 Minimum Wage
(Photo : Michael M. Santiago/Getty Images)
The three companies who pushed a suit against New York City in its law that aims to compensate delivery employees with an $18 hourly minimum wage is now trashed. According to Reuters, New York Acting Supreme Court Justice Nicholas Moyne will allow this law to take effect in the city, pending the outcome of the companies' lawsuit regarding this issue.
While this is already a step towards securing an increased hourly minimum wage, there may be changes once the suit wraps up. Still, this means that drivers are ensured $18 hourly minimum wages, alongside the tips they earn with their driving and performance.
Presently, drivers are only taking home an average of $7 to 11 hourly wage averages from the companies. Uber, DoorDash, and GrubHub will be compelled to adhere to this law once it takes effect.
Read Also: Lyft 'Women Plus Connect': A New Service to Match Users with Female, Nonbinary Drivers for Safety
NYC's Upcoming Law for Delivery Employees
Apart from the minimum hourly wage in NYC, this law would also give additional perks to workers, as an annual increase of $1 would take effect every April 1 of each year. New York City would be the first US city to require this minimum wage from this industry, allowing app-based workers a chance to secure earnings, depending on the hours they put in.
Minimum Wage for Delivery Workers
Back in July, the three delivery, logistics, and transportation companies Uber, DoorDash, and GrubHub joined forces in suing New York City for passing a law that requires them to pay a minimum hourly wage to its workers. This effectively put a stop to enforcing the law for several months, and instead of seeing it three months ago, it will soon take effect as the judge favors the minimum wage rulings.
While New York City was among the most notable for its actions, it is not limited in the city to also require these app-based companies to provide ample compensation for its employees.
Uber and Lyft previously threatened to pull out of Minneapolis, Minnesota as the city also adopted a minimum hourly wage policy that uplifts the per-mile earnings of its drivers.
The app-based workers from these rideshare and logistics companies are seeing a win after a long time of enduring the low hourly wage they get from these companies, previously only seeing $7 to 11 per hour on average. Soon, the suit will complete its proceedings and the law will follow through, offering a secured $18 minimum wage to delivery workers in NYC.
Related Article: Uber Eats to Start Accepting Food Stamps as Grocery Delivery Payments by 2024
