A New York State judge on Thursday denied Uber, DoorDash, and Grubhub’s attempt to block the city’s minimum-wage bill from going into effect, paving the way for certain gig workers to make at least $18 an hour.
The bill was a novel attempt to ensure tech giants better paid the city’s thousands of gig workers. New York City officials earlier this summer announced a new minimum-pay rate for app-based food-delivery workers. The new figure was supposed to raise workers’ pay to $17.96 starting July 12 and would eventually increase to $19.96 by April 1, 2025.
The new pay standard was expected to face contention from the gig platforms themselves. These gig companies, which rely on independent contractor models and set their own pay, filed a temporary restraining order to stop it from going into effect in July. They argued that consumers would be burdened with higher costs and workers would be harmed by lower tips.
The gig companies can still appeal the judge’s ruling.
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