It was previously reported that on June 12, 2023, the New York City Department of Consumer and Worker Protection (DCWP) released the final rule regarding the required minimum wage for app-based restaurant delivery workers.
New York City has announced that the minimum wage rate requirements for delivery workers of third-party food delivery services scheduled to take effect on July 12, 2023 have now been postponed due to pending lawsuits.
The Details:
Under the final rule now delayed, app-based restaurant delivery workers were to be paid a minimum wage as follows:
· Apps that pay for all the time a worker is connected to the app (i.e., time waiting for trip offers and trip time) must pay at least $17.96 per hour, which is approximately $0.30* per minute, not including tips. This rate will increase to $18.96 on April 1, 2024, and $19.96 on April 1, 2025, plus an adjustment for inflation each year;
or
· Apps that only pay for trip time (i.e., time from accepting a delivery offer to dropping off the delivery) must pay at least approximately $0.50* per minute, not including tips. This rate will reach approximately $0.53* per minute on April 1, 2024, and $0.55* per minute on April 1, 2025, plus an adjustment for inflation each year.
* According to the DCWP, due to rounding, these rates are approximate. Apps must calculate exact pay in accordance with DCWP Rule.
Next Steps:
As a result of the final rule being delayed, establishments paying app-based restaurant delivery workers are not required to pay the minimum wage as described above. New York City has provided the following link for businesses impacted to monitor future updates.
nyc.gov/DeliveryApps
Have Questions?
Please contact your dedicated service professional with any questions.