Dear New Yorkers,
A judge has affirmed city rules mandating a pay rate of at least $17.96 an hour before tips for Uber, Grubhub and DoorDash workers — making New York the first major U.S. city with a guaranteed driver wage. Because the app companies treat their workforce as independent contractors and not as employees, delivery cyclists and drivers are not entitled to either the federal or state guaranteed minimum wage. The Thursday decision defeated legal efforts by gig economy giants Uber, DoorDash and Grubhub to stop the rule from going into effect. In rejecting the apps’ request for an injunction, Manhattan Supreme Court Judge Nicholas Moyne called any harm to Uber, DoorDash and Grubhub “speculative,” noting that they will be able to pass any increases in costs on to consumers. Only Relay, a smaller New York-based delivery operation, is exempt under the decision from Moyne, who granted the company’s request for an injunction because it works directly with restaurants and already pays an hourly base rate. Delivery worker leaders, who have been advocating for better wages and pay standards for more than three years under the banner of Los Deliveristas Unidos, cheered the ruling and vowed to hold the companies accountable. Sergio Ajche, a cofounder of the group who delivers for Grubhub, said on Thursday that he was “contentísimo” — thrilled — with the judge’s decision. “For me it’s important that the most powerful of the companies lost here,” he said in Spanish. “We demonstrated that that change can happen, even if they don’t want it to.”
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