App-based restaurant delivery workers in New York City are set to receive a significant pay bump with the city’s announcement of a new minimum pay rate.
The city’s 60,000 delivery workers, who currently earn on average $7.09 per hour, will earn a minimum of $19.96 per hour.
"This new minimum pay rate, up by almost $13/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," said the City of New York mayor Eric Adams in a statement.
The pay raise will be phased in, rising to $17.96 on July 12, 2023, and increasing to $19.96 on April 1, 2025.
Delivery works can be paid per trip, per hour worked, or by another method calculated by the apps, provided the workers make a minimum hourly average wage of $19.96.
Apps that pay workers for all the time a worker is connected to the app, which includes the time waiting for trip offers and the trip time, must pay at least $17.96 per hour in 2023, which is approximately $0.30 per minute, excluding tips.
Apps that only pay for trip time, being the time from accepting a delivery offer to dropping off the delivery, must pay workers at least approximately $0.50 per minute of trip time in 2023, excluding tips.
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