New York City has enhanced its minimum pay standards for app-based delivery workers, mandating a new base hourly wage of $21.44 for couriers working across various platforms. This policy, which applies to services including Uber Eats, DoorDash, and Instacart, aims to bolster the earnings of delivery workers for the time spent preparing and completing orders, excluding tips.
Details of the New Pay Structure
The updated regulations extend minimum pay protections to grocery delivery couriers, aligning them with those of restaurant delivery workers. Delivery apps are required to calculate worker earnings based on “engaged time,” which includes the time spent actively working on orders. Additionally, these platforms must adhere to compensation rules established under the city’s delivery worker laws, which mandate itemized pay statements and ensure wages are disbursed no later than seven days after the conclusion of a pay period.
As part of the new regulations, the minimum pay rate is set to rise to $22.13 on April 1, 2024, reflecting ongoing adjustments for inflation. City officials have committed to reviewing and updating this hourly floor annually.
New Tipping Requirements Implemented
In conjunction with the wage increase, new tipping requirements are now in effect. Delivery applications must provide customers with a transparent tipping option at checkout, including suggested amounts or the ability to enter a custom figure. This change aims to improve earnings for delivery workers, who often rely on tips as a significant part of their income.
The introduction of these minimum pay rates follows recent federal court decisions that dismissed legal challenges from several delivery companies, allowing the city’s regulations to proceed. According to city officials, the ongoing adjustments to pay rates are designed to ensure that delivery workers receive fair compensation for their labor.
With the implementation of these measures, New York City continues to position itself as a leader in labor protections for gig economy workers, aiming to provide better financial stability for a workforce that has seen significant growth in recent years.
