Judge Halts NYC’s Food Delivery Minimum Wage Law Following DoorDash and Grubhub Lawsuit

A judge has issued a temporary block on NYC’s food delivery minimum wage law, delaying its implementation on July 12. The decision comes in response to a lawsuit filed by popular food delivery platforms DoorDash and Grubhub, who are challenging the city’s new legislation, CNN reported.

The implementation of NYC’s food delivery minimum wage law comes at a time when online meal delivery services experienced a significant surge in popularity during the pandemic. (Photo: Washington Post)

NYC’s Food Delivery Minimum Wage Law

Announced just last month, NYC’s food delivery minimum wage law aimed to boost the pay of app-based delivery workers to $17.96 per hour (before tips) starting July 12. It also planned to gradually raise the minimum wage to nearly $20 per hour by April 2025, while also incorporating annual adjustments for inflation.

However, DoorDash and Grubhub jointly filed a lawsuit with the Supreme Court of the State of New York, asserting that the new law would have adverse effects on their businesses and ultimately harm the very delivery workers it aims to protect. Additionally, Uber, the parent company of Uber Eats, filed a separate lawsuit challenging the law.

The implementation of NYC’s food delivery minimum wage law comes at a time when online meal delivery services experienced a significant surge in popularity during the pandemic, with food delivery volumes remaining high even after the easing of Covid restrictions.

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Judge Halts NYC’s Food Delivery Minimum Wage Law

Judge Nicholas Moyne, presiding over the case, has scheduled oral arguments for July 31 and temporarily blocked NYC’s food delivery minimum wage law from taking effect until the hearing. This decision provides a temporary respite for the delivery platforms and their stakeholders.

DoorDash expressed its satisfaction with the judge’s order calling it an early and promising victory for local businesses, consumers, and delivery workers across New York City.

Grubhub also welcomed Friday’s decision and stated their eagerness to present their arguments, emphasizing that the city’s rule was the outcome of an arbitrary and irrational rule-making process.

At the time of reporting, there has been no response from the Department of Consumer and Worker Protection Commissioner regarding the recent development. However, in response to the lawsuits, Commissioner Vilda Vera Mayuga previously stated that the minimum pay rate would uplift thousands of working New Yorkers and their families out of poverty.

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