The New York City (NYC) government in the US has announced new minimum pay rates to support more than 60,000 app-based restaurant delivery workers in the city.
The announcement was made on 11 June by the city’s Mayor Eric Adams and NYC Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga.
The minimum wage has increased to at least $19.96 per hour from the previous $7.09 per hour.
Initially, the pay rate will be $17.96 per hour with effect from 12 July. This will then increase to $19.96 per hour from 1 April 2025.
The wages are also subject to annual changes based on inflation.
Adams said: “Our delivery workers have consistently delivered for us — now, we are delivering for them.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
“This new minimum pay rate, up by almost $13.00/hour, will guarantee these workers and their families can earn a living, access greater economic stability and help keep our city’s legendary restaurant industry thriving.”
To implement the changes in pay rate, restaurant delivery apps will also have the flexibility on how they want to pay the delivery workers.
In a statement, the NYC government said the mobile app companies will also have the option to pay the delivery workers on a per trip basis, per hour basis or develop their own ways to pay the employees, ensuring that the minimum payment is $19.96 on average.
As per the NYC government, this minimum rate, which is around $0.30 per minute, excludes tips.
The latest announcement comes after the City Council passed a law in 2021, under which DCWP was required to set up a minimum pay rate for the delivery workers in NYC.
According to a report by StreetBlogs NYC, the initial proposal was to increase the wages to $23.82 per hour.
Mayuga said: “When the rate takes full effect, workers will make three times as much as they do now. I am proud that our city has fulfilled its promise to provide more stability and protections for 60,000 workers and get them a dignified pay rate.”