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New York City will implement minimum wage for app-based workers, marking national first

In a national first, New York City will implement a minimum pay rate for app-based food delivery workers

By WYATTE GRANTHAM-PHILIPS
Published - Jun 12, 2023, 01:42 PM ET
Last Updated - Jun 21, 2023, 09:15 AM EDT

WASHINGTON (AP) — New York City will implement a minimum pay rate for food delivery workers on apps like Uber Eats and DoorDash — marking a first for the U.S., officials said this week. 

The new rule could nearly triple average earnings for app-based delivery workers in the coming years. New York’s more than 60,000 delivery workers currently make an average of $7.09 an hour, according to the city. But on July 12, an increased pay rate of $17.96 an hour will take effect — and that minimum wage is set to rise to $19.96 by April 2025, the city said. For years following, the minimum pay rate will be adjusted annually for inflation. 

“Our delivery workers have consistently delivered for us — now, we are delivering for them," New York City Mayor Eric Adams said in a Sunday statement announcing the Department of Consumer and Worker Protection's new rule. "This new minimum pay rate, up by almost $13.00/hour, will guarantee these workers and their families can earn a living, access greater economic stability, and help keep our city’s legendary restaurant industry thriving.” 

Ligia Guallpa, executive director of the Brooklyn-based Worker’s Justice Project, called the move a "historic moment for New York City” — as labor organizers across the country call for better pay and improved working conditions for gig workers, who often face unreliable earnings and little safety protections. 

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