Delivery workers in New York have their daily minimum wages on hold as a judge implements a temporary halt on them.
A DoorDash delivery man on his way for a delivery (Photo: CNBC)
A Halt In Minimum Wage For Delivery Workers Implemented By NYC Judge
A recent policy implements an $18-per-hour minimum wage for delivery workers, but delivery companies were not happy with the policy, leading them to file lawsuits regarding the hourly minimum wage. Nicholas Moyne, a New York State Supreme Court Judge, issued the said halt as DoorDash, Uber, and GrubHub filed separate lawsuits regarding the minimum wage. Moyne issued the halt to prevent the policy from being implemented next week as they settle the lawsuits filed by the delivery companies.
The next hearing for the minimum wage lawsuits filed by the delivery companies is set for July 31. The hearing would decide whether the halt on minimum wage for delivery workers should stay in effect as they handle the legal battle that the delivery companies started.
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Lawsuits Filed By Delivery Companies In Protest For The Minimum Wage Policy
The minimum wage would increase to $18.96 per hour in April next year and to $19.96 per in May next year. The move, which DoorDash and Grubhub describe as “drastic” and putting “immediate” repercussions for those involved including the over $5 rise for New York City consumers per order, has been challenged in court. According to both businesses, this would ultimately result in a decline in the demand for their services as well as harm to their respective brands and financial standing.
Uber, on the other hand, predicts that before inflation, the cost of orders will climb by approximately $6 and that order volume would decrease by about 20%. It claims that this is the outcome of “flawed” data derived from “biased” polls and “unrealistic expectations.”
Mayor Eric Adams describes the minimum wage move as a way to support delivery workers and to make delivery companies realize that their opposition to the minimum wage policy is hurting their workers.
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