DoorDash said yesterday that, due to New York City’s mandate to increase the minimum wage for delivery workers, it has had to implement changes to its service and platform. The delivery app called the court ruling “ill-conceived” and “extreme.”
This June, the NYC ruling declared that food delivery workers would have to make a minimum of $17.96 per hour plus tips with a caveat that, by 2023, the minimum wage must rise again to $19.96 per hour. The NYC Department of Consumer and Worker Protection estimated that the average wage for workers before the mandate was roughly $12 per hour.
As a rebuttal, DoorDash announced that NYC dashers will now earn at least $29.93 per hour of “active time,” excluding tips. The food delivery service highlighted that the value is a minimum, so DoorDash would adjust the payment weekly if a worker earns less.
The news comes a few days after NYC Mayor Eric Adams celebrated the minimum wage increases, urging delivery apps to take action.
“The minimum pay rate of at least $17.96 per hour will help lift thousands of New Yorkers and their families out of poverty, while still allowing flexibility for both apps and workers,” said Adams in a statement. “The apps should immediately pay delivery workers the minimum pay rate, as the New York State Supreme Court ruled on September 28, 2023. We thank the court for making the right decision and thank the hundreds of delivery workers who fought for their right to earn a dignified wage.”
To balance the increased operational costs in NYC, the regulations are compelling the service to increase fees in the area, said DoorDash. The app will also move tipping to after checkout so it is not factored into the total delivery price, as recommended by the NYC Department of Consumer and Worker Protection.
Additionally, DoorDash shared that it is pausing its Dasher Priority Access program, an offering that matched higher-paying offers to higher-rated delivery workers.
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