Tech firm blocks pay hikes for NYC delivery workers | App

1 week ago new york cityapp base of delivery man The change was temporarily delayed after several tech companies launched a legal salvo amid prospects of an hourly minimum wage hike.

door dash, grub hub, uber Relay filed a lawsuit in Manhattan civil court on July 6, recently green-lighting a $17.96 hourly minimum wage for app delivery workers due to start on July 12, hurting its business. He also argued that this would have a negative impact on management. army of workers.Under the law, the minimum wage is gain By 2025, an app delivery worker will cost about $19.96.

The day after the lawsuits were filed, Judge Nicholas W. Moyne, presiding over each of the companies’ cases, granted a request for a preliminary injunction blocking the new minimum wage from taking effect for at least two weeks. Moyne has scheduled a hearing on the temporary restraining order on July 31.

Moyne’s decision on the matter is just one of many steps in what is likely to be a lengthy and complex litigation, but supporters across the country are expected to follow developments closely. new york City labor regulations are often seen as a precursor to feasibility elsewhere. If New York City’s effort succeeds, other municipalities may find the courage to enact similar regulations, but if it fails, fears of a nasty legal battle will prompt other municipal authorities to follow Gotham’s lead. Advocates say it could dissuade them from doing so.

“New York City is committed to protecting these workers and ensuring they are paid the minimum wage like all other workers,” said Elizabeth Thaler, citywide director of the Legal Aid Society’s Employment Law Division. Stated.

While a lawsuit at the New York state level will not set a precedent outside of New York, New York City’s recognition as a leader means that the outcome of this lawsuit could go two ways.

“If New York City bans such practices, other municipalities in the state are likely to be reluctant to spend their money fighting these big companies,” Thaler said. “New York City often passes workers’ rights protections, and other municipalities see those protections in action, and sometimes pass their own laws.

Thaler also said the delivery workers were “predominantly people of color and immigrants”, adding: “The judge’s ruling already affects workers’ rights. At least two wage hikes have been implemented. It’s going to be a week late,” he said. .

Ligia Gualpa, executive director of the Workers’ Justice Project, who heads an association of delivery drivers seeking protection called Los Deliveristas Unidos, is calling for a minimum wage to stop her from relying on tips as her main source of income. said. Local officials Said After tipping, the delivery driver receives about $11 an hour after tipping, which is $4 less than the $15 minimum wage in New York City.

“We set a floor on the wages of delivery workers, not just delivery workers in New York, so the impact here on a national level is huge. “We are setting an example across the nation in terms of setting up reasonable labor protections,” said Gualpa, “a contractor who by design is completely exempt from labor protections such as minimum wage laws.” “This law will not only raise the minimum wage for app delivery workers, but it will also improve the lives of thousands of workers who currently live on near-poverty wages.”

Gualpa said his supporters wanted “quick decisions on setting wage rates so that workers can earn a living wage without further delays.”

Kamron Daulatshahi, a California attorney at Mills Sadat Daulat Law Firm, has handled wage and hour violations and other employment disputes, but his efforts in the West Coast and New York state have spread to other areas. could also have spillover effects, he said. (California Supreme Court weigh the case (over state laws on gig work that allow companies to treat app-based workers as independent contractors rather than employees).

“New York law, for example, is not precedent for California law, and vice versa, but it is absolutely compelling in some circumstances,” Daulashahi said. “It’s unclear which will be decided first, but I suspect the preliminary injunction in the New York case will be decided first.” [but] It could convince other states. ”

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The app companies have expressed satisfaction with the preliminary injunction as their supporters await further legal proceedings. They argued primarily for the protection of workers and opposed enforcement of the rule, but against its intent. Grubhub said it was “satisfied with the judge’s decision on Friday to delay the implementation of a rule that, if left unchecked, will have serious negative consequences for delivery partners, consumers and independent businesses.”

Josh Gold, Uber’s senior director of public relations, commented on the injunction: “We want to use this time to work with the city and all stakeholders to find minimum wage rules that won’t have a devastating effect on couriers and consumers,” he said. Similarly, DoorDash said the interim injunction “will protect consumers, local businesses, and deliveries across New York City from the harmful and lasting effects of extreme revenue standards resulting from a fundamentally broken process.” “It’s an early and promising victory for our members.”

New York City officials regret the preliminary injunction, but hope a judge will rule in their favor soon. “We are very disappointed that the apps have delayed the introduction of the minimum wage. It will help lift 1,000 working New Yorkers and their families out of poverty,” said Vilda Vera Mayuga, New York City Commissioner of Consumer and Labor Protection. statement.

“We look forward to a swift decision to ensure that the dignified wages that workers deserve are not delayed unnecessarily.”