Delivery-app companies sued New York City on Thursday over a law that requires them to start paying tens of thousands of delivery workers a minimum wage starting next week.
DoorDash DASH, -2.63%, Uber UBER, -3.55% and Grubhub filed lawsuits against the city, which announced the law last month. It mandates that delivery workers must be paid $17.96 an hour without tips by July 12, and at least $19.96 an hour by 2025 — above the city’s minimum wage for other workers.
The companies are taking issue with the fact that the law requires them to pay the workers, whom they consider independent contractors, for the whole time they’re logged into the apps. That’s a departure from the usual way the companies pay the workers, which is from when workers first accept a delivery until they deliver it.
Unless courts block its implementation, the law would be the first of its kind to take effect in the nation. Seattle passed a minimum-wage ordinance for delivery workers last year, but it doesn’t take effect until next year.
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Article URL : https://www.marketwatch.com/story/doordash-uber-and-grubhub-sue-new-york-city-over-minimum-wage-for-delivery-workers-2b80b34d