Lawsuit Filed by Uber, DoorDash, and Grubhub Challenges NYC Delivery Pay Legislation

**Food Delivery Services Sue New York City Over New Minimum Pay Rules**

Uber Eats, DoorDash, and Grubhub have filed a joint lawsuit against New York City to block its new minimum pay rules for food delivery workers. The rules, which have been hailed as a national first, could significantly increase the earnings of app-based delivery workers. Starting from July 12, a higher pay rate of $17.96 per hour will go into effect, nearly tripling the current average earnings of $7.09 per hour for the city’s 60,000 delivery workers. However, the food delivery companies argue that these changes would lead to higher costs for consumers and are seeking a temporary restraining order to prevent the rules from taking effect.

**Challenging the Assumptions behind the New Rules**

Uber, DoorDash, and Grubhub claim that the new rules are based on the false assumption that restaurants make no profit from deliveries. Uber spokesperson Josh Gold argues that the changes must be paused to prevent damage to restaurants, consumers, and the couriers the rules aim to protect. In a joint effort, DoorDash and Grubhub have filed a lawsuit, while Uber has filed its own separate lawsuit. Additionally, the New York-based Relay Delivery has also filed a lawsuit against the new rules. The companies are concerned about the financial impact on both themselves and their customers.

**Seeking Fair Pay for Delivery Workers**

Vilda Vera Mayuga, the commissioner of New York City’s Department of Consumer and Worker Protection, defends the new rules, stating that delivery workers deserve fair compensation for their labor. She acknowledges the challenging conditions that delivery workers face, such as thunderstorms, extreme heat events, and the risks they take to deliver for New Yorkers. The city remains committed to ensuring fair pay for these workers.

**Flexibility in Payment Policies**

The new rules provide food delivery services with some flexibility in how they pay their workers. Apps can choose to pay delivery workers per trip, per hour worked, or according to another policy created by the company. However, their earnings must meet the minimum pay rate set by the city. This allows companies to determine the payment method that works best for their business while still ensuring that workers receive fair compensation.


Food delivery services in New York City are taking legal action to block the implementation of new minimum pay rules for delivery workers. Uber, DoorDash, and Grubhub argue that the changes would result in higher costs for consumers and are challenging the assumption that restaurants make no profit from deliveries. However, the city maintains that delivery workers deserve fair pay for their labor and remains committed to ensuring their well-being. The new rules provide flexibility in payment policies, allowing companies to choose the most suitable method while meeting the minimum pay requirement. The outcome of the lawsuit will determine whether the new rules will go into effect or be revised.

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