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In June 2023, the Adams administration led the nation when it announced a first-of-its-kind minimum pay rate for app-based restaurant delivery workers. For years delivery workers were paid poverty wages by the apps and lacked crucial protections, especially during the pandemic, and we are proud of the work we have done to provide these workers with more dignified and predictable pay.
On Monday, April 1st the first-annual pay increase kicked in, bringing workers’ pay to at least $19.56 per hour before tips. The minimum pay rate has been a huge success and a win for New Yorkers, but it’s important to stay focused on the facts since some apps continue to spread misinformation and sow confusion among workers and consumers. As part of the law, delivery apps are required to submit monthly reports to us so that we can ensure that they are complying with the minimum pay rate. The apps’ monthly compliance data underscores just how much of a success the new pay rate has been. Here are the facts:
Workers are making a more livable wage
There is no question that workers are earning more money thanks to the minimum pay rate. Almost overnight, these workers went from being paid a rate of $5.39 per hour before tips – far below the minimum wage – to earning at least $17.96 per hour before tips. In just the first two months since we began enforcing the minimum pay rate, apps paid workers $16.3 million more per week across the workforce – from $9.9 million per week to $26.2 million per week. That’s a staggering 165% increase based on data from Uber Eats, DoorDash, and Grubhub. This means more than $848 million more annually is going into the pockets of our hardworking delivery workers. For the typical worker, this is an increase of more than $14,000 per year.
Apps are using workers’ time more efficiently
Because apps now pay for the time workers spend “on-call,” the amount of time workers spend waiting for trips has decreased by a cumulative 209,000 hours, while the amount of time spent on trips has remained steady, improving the use of workers’ time. The number of workers performing deliveries has also remained the same before and after the rate. This means that, despite apps’ threats, the pay increase has allowed workers to earn more money while maintaining the same volume of work.
Consumers and restaurants have not been negatively impacted
The compliance data also shows that there have been no negative impacts on the industry as a whole. There was no change in the number of deliveries performed by workers for Uber Eats, DoorDash and Grubhub, which together average about 2.6 million deliveries a week, both before and after we began enforcing the rate, indicating a robust food delivery industry for restaurants and consumers alike.
Of course, there is still work to be done. The data shows that tips have decreased by $6.6 million – in large part because Uber and DoorDash made changes in their apps to make it more difficult for consumers to add a tip While this is troubling, the net increase in earnings is still an impressive $9.7 million per week. Removing or hiding the option to tip punishes workers, lowering their overall potential earnings and taking choice away from consumers. We do not endorse these business decisions, and we urge the City Council to explore legislation to reverse these changes that will give us the power to continue holding apps accountable.
The minimum pay rate was the result of years of advocacy from workers and worker organizations, and extensive research and policymaking by the city. The Adams Administration is committed to improving the lives of working New Yorkers and we are proud of the fact that the minimum pay rate has lifted these workers up financially so they can better provide for themselves, and their families, and better participate in our shared local economy.
We urge all delivery workers with questions about the Minimum Pay Rate, or complaints about the apps’ compliance, to reach out to us immediately at nyc.gov/DeliveryApps or by calling 311.
Vilda Vera Mayuga is the Commissioner for the city’s Department of Consumer and Worker Protection.
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Vilda Vera Mayuga , 2024-04-04 18:03:03
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