Uber Eats, DoorDash and GrubHub Sue New York Over Minimum Wage

DoorDash, Uber Eats and Grubhub sued New York City this week in an effort to block a new law that sets minimum wages for food-delivery workers.

The Wall Street Journal reported Thursday that the companies said the new per-minute rate on trips could end up being significantly higher than the minimum wage set for other industries, which is currently $15 an hour.

DoorDash and Grubhub jointly filed a lawsuit in the Supreme Court of New York, according to the WSJ.

Uber Eats and Relay each filed separately.

Starting July 12, the apps that pay for all the time a worker is connected to the app must pay at least $17.96 per hour, which is approximately $0.30 per minute, not including tips. 

Apps that only pay for trip time (must pay at least approximately $0.50 per minute of the trip time, not including tips.

New York City Mayor Eric Adams, in announcing the new pay rate last month, said workers for delivery apps will earn at least $19.96 an hour when the new pay rate is fully implemented.

There are more than 60,000 delivery workers in New York City.

They currently earn $7.09 an hour on average according to the city.