A first-of-its kind law requiring a minimum wage for app-based delivery workers will take effect after a judge rejected the companies’ bid to block it.
Uber, DoorDash and Grubhub won’t be able to get out of paying minimum wage to their New York City delivery workers after all, following a judge’s decision to reject their bid to skirt the city’s new law. The upcoming law, which is still pending due to the companies’ ongoing lawsuit, aims to secure better wage protections for app-based workers. Once the suit settles, third-party delivery providers will have to pay delivery workers a minimum wage of roughly $18 per hour before tips, and keep up with the yearly increases, Reuters reports.
The amount, which will increase April 1 of every year, is slightly higher than the city’s standard minimum wage, taking into account the additional expenses gig workers face. At the moment, food delivery workers make an estimated $7-$11 per hour on average.
No, the optimal solution is to have a society where all the blood and sweat equity that has been put into the system by workers is finally repaid, and the capitalist leeches of the world are knocked off their thrones. Workers created the abundance that allowed the billionaires of the world to get fat while they let others starve, and only once that misappropriation of resources is ended can we fix the issues that the oligarchs have created.
I agree. I’m having a hard time understanding how raising the salary of delivery workers to what an entry level doctor, engineers or lawyer is going to solve the problem. There are two things that might happen, either all the other salaries in the world will then also increase (and thus services too), keeping the wealth disparity the same, or, since these delivery companies already operate on such thin margins (GrubHub net profit for past years have been negative $millions), they are going to pass the cost to the consumer. It creates an interesting problem where then it’s too expensive to get delivery so you don’t order food, which means less delivery jobs are needed so people are laid off, preventing people from making money. Also, from what I’ve seen, most of the workers seems to be immigrants. While I’m not saying we take advantage of immigrants, but these low barrier to entry jobs have always been helpful for those who have complicated statuses.
I’m not bashing any delivery worker (I used to work at a wings shop in my youth), but the amount of interaction you spend with a delivery worker is usually minimal. It doesn’t require any formal training and neither being a bad one is going to affect whether you are in the mood for Thai food.
The federal minimal wage is still the same. $18 an hour is still low in New York. If anything, the law just gets rid of jobs people should not have been going for in the first place.