**New York City Ordered to Temporarily Delay Minimum Pay Standards for App-Based Food Delivery Workers**
A Judge Orders Temporary Delay
In a recent development, a judge has ordered New York City to temporarily delay the implementation of new minimum pay standards for app-based food delivery workers. This comes in response to a lawsuit filed by major food delivery companies, including Uber Eats, DoorDash, and Grubhub, as well as New York-based Relay Delivery.
New York City’s Plan to Increase Earnings
City officials had recently announced their plans to substantially increase earnings for app-based food delivery workers in order to provide them with more financial stability. The new law, which was scheduled to take effect on July 12, aimed to establish an initial increased pay rate of $17.96 per hour.
Lawsuit Filed by Food Delivery Services
However, the food delivery services, along with Relay Delivery, filed a lawsuit on Thursday in state Supreme Court in Manhattan. The companies argued that the city’s rule-making process was flawed and that the higher costs associated with the increased pay rate would be passed along to consumers.
Temporary Delay Ordered
Judge Nicholas Moyne has ordered a temporary delay on the implementation of the new standard until a hearing on July 31. This decision has been praised by the food delivery giants, who believe that the rule, if allowed to stand, would have serious adverse consequences for their delivery partners, consumers, and independent businesses.
Response from the Food Delivery Companies
Grubhub, in a prepared statement, expressed satisfaction with the judge’s decision, stating that the delayed implementation would prevent the rule from negatively impacting delivery partners, consumers, and independent businesses. DoorDash also welcomed the decision, hoping that it would pave the way for a more reasonable earnings standard that reflects the usage of these platforms by New Yorkers. Uber expressed its desire to collaborate with the city and others to establish a minimum pay rule that avoids detrimental consequences for couriers, consumers, and restaurants.
Dissatisfaction from the Department of Consumer and Worker Protection
On the other hand, Vilda Vera Mayuga, the Department of Consumer and Worker Protection Commissioner, expressed extreme disappointment with the delay. Mayuga highlighted the fact that the current pay rates on these apps fall far below the minimum wage and emphasized the importance of the new pay rate in lifting thousands of working New Yorkers and their families out of poverty. Mayuga looks forward to a quick decision that ensures the dignified pay rate is not further delayed.
Moving Forward
The temporary delay on the implementation of new minimum pay standards for app-based food delivery workers in New York City is a result of the lawsuit filed by major food delivery companies. While the food delivery giants welcome the decision, the Department of Consumer and Worker Protection is disappointed and emphasizes the need to establish a dignified pay rate for workers. The final outcome of this case will have implications for the livelihoods of thousands of workers in the food delivery industry.
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