Photo Courtesy of Ed Reed/Mayoral Photography Office
City Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga called Sunday “a historic win for New York City’s delivery workers…”
By Forum Staff
Mayor Eric Adams and City Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga on Sunday announced that the City has set a first-of-its-kind minimum pay rate for app-based restaurant delivery workers.
When fully implemented, the city’s more than 60,000 delivery workers — who currently earn $7.09/hour on average — will earn at least $19.96/hour. Restaurant delivery apps will also have flexibility in how they pay delivery workers the new minimum rate.
DCWP closely considered all comments submitted during the public comment period and established a final rate that will greatly increase workers’ incomes, while also being responsive to industry and worker feedback. The final rate also takes into account that, as independent contractors, delivery workers pay out-of-pocket for their expenses and do not have access to workers’ compensation insurance, or paid time off, and must pay more in Medicare and Social Security contributions.
The pay rate will be $17.96 when it takes effect on July 12, 2023, and will increase to $19.96 when it is fully phased-in on April 1, 2025. The rate will also be adjusted annually for inflation. Apps have the option to pay delivery workers per trip, per hour worked, or develop their own formulas, as long as their workers make the minimum pay rate of $19.96, on average. Apps that pay workers for all the time a worker is connected to the app (the time waiting for trip offers and trip time) must pay at least $17.96 per hour in 2023, which is approximately $0.30 per minute, not including tips. Apps that only pay for trip time (the time from accepting a delivery offer to dropping off the delivery) must pay at least approximately $0.50 per minute of trip time in 2023, not including tips.
DCWP found that workers spend approximately 60 percent of their working time engaged in trips and 40 percent on-call. For example, on a given day, a worker may be on-call awaiting trip offers for four hours and making deliveries for six hours. If that worker’s app only pays for trip time, the worker would make $179.60 based on the trip time rate when the rate takes effect in 2023. If, instead, the worker’s app pays for both trip time and on-call time, the worker will still make $179.60. These per-minute rates are approximate. Apps would have to calculate exact pay in accordance with the rule.
In September 2021, the New York City Council passed Local Law 115, requiring DCWP to study the pay and working conditions of app-based restaurant delivery workers and to establish a minimum pay rate for their work based on the study results. DCWP published its study last year, which drew from data obtained from restaurant delivery apps, including DoorDash, GrubHub, UberEats, and Relay; surveys distributed to delivery workers and restaurants; testimony; extensive discussions with stakeholders on all sides; and publicly available data. Members of the public, delivery workers, and restaurant delivery apps submitted thousands of comments on the proposed minimum pay rule, which DCWP carefully considered in developing the final rule.
“Today is a historic win for New York City’s delivery workers, who have done so much for all of us through rain, snow, and throughout the pandemic,” said Mayuga. “When the rate takes full effect, workers will make three times as much as they do now. I am proud that our city has fulfilled its promise to provide more stability and protections for 60,000 workers and get them a dignified pay rate.”
