DoorDash, Grubhub and Uber Eats Challenge New York’s Minimum Wage

Food delivery platforms are taking their grievances with New York City’s new minimum wage law to court.

DoorDash, Grubhub and Uber Eats have sued the city, making the claim that the new law hurts delivery workers more than helping them. “DoorDash and Grubhub filed a suit jointly to the Supreme Court of the State of New York, while Uber — the parent company of Uber Eats — filed its lawsuit separately,” CNN reported.

The new minimum wage law, announced last month, will increase the pay for app delivery drivers to $17.96 per hour before tips on July 12, then increase to nearly $20 per hour by April 2025.

However, according to CNN, “The DoorDash and Grubhub lawsuit alleges that the new regulation is legally flawed because it targets only meal-delivery services and not grocery-delivery services. It also argues the regulation is legally flawed because it would compel the companies to pay workers for hours that they are available to take orders while logged into the delivery apps, even if they don’t actually make any deliveries.”

New York City’s mayor, Eric Adams, said the new law was designed to guarantee delivery workers and their families to earn a living and access greater economic stability.

A spokesperson for Grubhub acknowledged the City’s efforts to improve work for delivery workers, but said they can not “support a solution that has such unintended implications for those who rely on food delivery.”