New York State Court Orders DoorDash, Uber, and GrubHub Delivery Workers To Be Paid Nearly $18 Per Hour

Needless to say, the delivery companies aren't happy, with a DoorDash rep calling the court decision 'bad policy.'

Delivery drivers in the Big Apple are going to be cashing in.

Delivery workers for DoorDash, Uber Technologies, and GrubHub will be paid $17.96 per hour after their employers failed to convince an appeals court to block the minimum wage rule, Fortune reports. The delivery conglomerates sued New York City over its law in July 2023, arguing the law would hurt delivery workers more than help them. According to CNN, DoorDash released a statement calling the law a “bad policy. We will not stand by and let the harmful impacts of this earnings standard on New York City customers, merchants, and the delivery workers it was intended to support go unchecked,” the statement read.

“We – and others – clearly and repeatedly warned the city that using such a flawed process to underpin its rulemaking would have lasting and harmful impacts for all New Yorkers who use these platforms.” Now, the state appeals court’s ruling from Nov. 30 will allow the law to go into effect immediately and gives delivery services two options: paying the couriers the flat hourly rate or paying per delivery at nearly 50 cents a minute.

All three companies shared their feelings about the new law and how it will affect their business. A spokesperson from GrubHub said the company was “disappointed with the judge’s decision and are evaluating our next steps,” while DoorDash said the court is ignoring what they described as “harmful consequences.”

“The sad truth is that the court has chosen to ignore the harmful consequences such a misguided minimum pay rule will cause,” the spokesperson said. “We will continue to explore all paths forward to ensure these minimum pay rules work for everyone who uses these platforms in New York City.”

NYC’s lawmakers, including Mayor Eric Adams, are singing a different tune. After the law was announced, the mayor’s office released a statement from Adams suggesting the rule would ensure workers could earn a living and achieve higher economic stability. Commissioner of New York’s Department of Consumer and Worker Protection Vilda Vera Mayuga says the law is designed to support the city’s delivery drivers.

“Delivery workers, like all workers, deserve fair pay for their labor, and we are disappointed that Uber, DoorDash, GrubHub, and Relay disagree,” Mayuga said. “The minimum pay rate will help uplift thousands of working New Yorkers and their families out of poverty. We look forward to the court’s decision and to apps beginning to pay these workers a dignified rate.”