Uber, DoorDash, and Grubhub have filed lawsuits to try and block NYC's new $18 minimum wage law for food delivery app workers. The companies are seeking a temporary restraining order against the rule, which is scheduled to go into effect on July 12. In their jointly filed lawsuit, DoorDash and Grubhub claim the law unfairly targets meal-delivery services while excluding grocery-delivery services. - They argue that the rule would require them to pay workers for hours of availability on the delivery apps, even if they don't make deliveries.
- This could disadvantage delivery workers as the companies will need to closely monitor their time on the apps to control costs, they said.
- Uber claimed in a separate suit that the higher minimum wage would inflate food order prices, hurting local restaurants as well as consumers.
- In response, the city and labor advocates say the companies prioritize business interests over the well-being of struggling workers, who face extreme weather to make deliveries while dealing with an affordable housing crisis.
NYC is the first U.S. city to require a minimum wage for food delivery workers, aiming for $17.96 per hour before tips. - It has over 60,000 food delivery workers earning an average of $7.09 per hour, as estimated by the city's Department of Consumer and Worker Protection.
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