NEW YORK — A New York judge has granted a temporary injunction against a New York City law that would have raised the minimum wage for food delivery workers, delivering a victory for major food delivery companies like DoorDash, Grubhub, and Uber Eats.
The law, passed by Mayor Eric Adams and the Department of Consumer and Worker Protection, aimed to improve conditions for delivery workers by mandating a minimum wage of $17.96 per hour starting last week. That rate would have increased to $19.96 per hour by April 2025. Officials said it was the first such wage rule in the country.
But DoorDash, Grubhub, and Uber argued the pay hike would lead to steep fee increases for customers, reduced demand, and financial harm to their businesses. In issuing the temporary restraining order last week, Judge Nicholas Moyne said he wanted to preserve the status quo while assessing the possibility of “irreparable harm.”
In its complaint, Uber estimated order costs could increase by almost $6 before inflation and that orders could decline by 20 percent under the new pay structure. For now, the current minimum wage in New York City remains at $15 per hour.
According to the Department of Consumer and Worker Protection, delivery workers currently make well below that — around $11.12 per hour including tips. Without tips, some make as little as $4.03 per hour.
The new law also required third-party delivery companies to pay workers either an hourly wage or a per-delivery rate of about 50 cents per minute. The companies have resisted switching away from a traditional gig work pay model.
Advocates for the policy such as the Los Deliveristas Unidos expressed disappointment after the ruling and vowed to continue fighting for higher pay. But the city's effort to improve conditions for food delivery workers has been halted for now as the court weighs arguments on both sides.
