Categories: Business

Food delivery workers to have minimum wage hike in New York City

Good news awaits the app food delivery workers. Authorities from the city of New York have announced an increased in the daily wages for the food app delivery agents. The hike has been made amidst a time when the demand for such services like DoorDash and Uber Eats has increased significantly ever since the COVID-19 pandemic began. There are nearly 60,000 food delivery workers who make an average of $7.09 per hour. As per the new price hike, it will allow these agents to earn at least $19.96 per hour. The pay for the delivery workers would be increased by $17.96 per hour by July 12, 2023 and is expected to go up by nearly $20 per hour by April 2025.

The authorities have said that the pay would be adjusted as per the inflation on an annual basis. It has also been said that the delivery apps would have the flexibility on how they would pay their workers the new minimum rate. The only condition would be that the workers should be able to make the minimum amount. The app owners could decide if they wish to pay them as per trips made, per hour worked or have their own formula.

Eric Adams, the New York City mayor in a statement said that the delivery workers have worked hard  and that it is now time to give it back to them. The statement added that the new pay hike would allow the workers and their families to earn a living while accessing greater economic stability. The mayor added that it would also contribute towards the progress of the restaurant industry.

While talking about the pay hike, it has also been said that the workers should also be paid at least $0.30 per minute for the time they are waiting for a trip once the changes have been applied in 2023. The applications that only pay the workers after the he/she has accepted the delivery trip, will have to pay at least $0.50 per minute. The release has also mentioned that the rates do not include tips.

Photo Credits: Unsplash

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