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{"id":34906,"date":"2023-06-13T21:41:12","date_gmt":"2023-06-13T21:41:12","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/06\/13\/nobody-is-happy-with-nycs-18-delivery-worker-minimum-wage\/"},"modified":"2023-06-13T21:41:12","modified_gmt":"2023-06-13T21:41:12","slug":"nobody-is-happy-with-nycs-18-delivery-worker-minimum-wage","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/06\/13\/nobody-is-happy-with-nycs-18-delivery-worker-minimum-wage\/","title":{"rendered":"Nobody is happy with NYC\u2019s $18 delivery worker minimum wage"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/06\/13\/nobody-is-happy-with-nycs-18-delivery-worker-minimum-wage\/<\/a><\/br>
\nNobody is happy with NYC\u2019s $18 delivery worker minimum wage<\/br>
\n2023-06-13 21:41:12<\/br><\/p>\n

\n

New York City has established a new minimum wage for food delivery workers who deliver for platforms like Uber Eats, DoorDash, Grubhub and Relay. It should be a historic win for gig workers, but both delivery workers and companies are unhappy with it.<\/p>\n

Many workers, labor rights activists and even the city\u2019s comptroller say the minimum pay \u2013 just under $18 per hour \u2013 is not nearly enough to cover the costs of living in NYC or the costs of being a delivery driver. App-based gig companies say the ruling will cause unintended consequences for workers, and a spokesperson for DoorDash told TechCrunch that \u201clitigation isn\u2019t off the table.\u201d<\/p>\n

Of course, there are those who say that perfect shouldn\u2019t be the enemy of good, and plenty of delivery workers are in support of the ruling. NYC\u2019s delivery workers currently make about $7.09 an hour on average, according to a release from the city, so the new ruling is certainly a step up. But it\u2019s clear that this contentious issue will further divide the two camps.<\/p>\n

Companies that use delivery workers will get to choose between one of two minimum pay rate options outlined by the city<\/a>. The first option requires companies to pay a worker at least $17.96 per hour, excluding tips, for time spent connected to the app, which includes time spent waiting for a gig. This will increase with inflation next year to about $19.96 per hour.<\/p>\n

The other option involves apps paying $0.50 per minute of active time, exclusive of trips. Active time happens from the moment a worker accepts a delivery to the moment they drop off the food.<\/p>\n

While none of the gig companies specified which method of payment they might follow, industry experts have their money on the $0.50 per active minute option. Paying per active minute is already written into how these companies do business in many locations.<\/p>\n

In California, where Proposition 22<\/a> is the law of the land, companies are guaranteed to pay at least 120% of the local minimum wage for active miles. If the minimum wage is $14 per hour, a delivery that took 15 minutes door-to-door would earn a worker $4.20.<\/p>\n

Too little too late<\/h2>\n

Many deliveristas \u2013 the community of app-based delivery workers \u2013 and labor rights activists argue the city is about six months late in ruling on a delivery worker minimum pay rate and that the revised set of rules is a reduction from the initially proposed pay formula. In November, the city had proposed a minimum pay of $24 per hour<\/a>.<\/p>\n

The $18 per hour pay rate will end up looking more like around $13 per hour after expenses, according to a statement<\/a> from NYC Comptroller Brad Lander.<\/p>\n

In September 2021, the Department of Consumer and Worker Protection (DCWP) passed Local Law 115, which set a January 1, 2023 deadline to set a minimum pay rate for deliveristas. In public comments<\/a>, many gig workers said they should be back paid for the last half a year.<\/p>\n

\u201cCity Hall acquiesced to the lobbying of multibillion-dollar app companies, delaying the raises owed to deliveristas six months ago and setting a sub-minimum-wage standard that pads corporate profits off the backs of some of the hardest workers in our city,\u201d said Lander in a statement.<\/p>\n

Lander went on to say that workers should be paid at least the minimum wage after expenses. Most deliveristas drive a moped or e-bike in NYC and not all own their own vehicles. Services from companies like Joco<\/a>, Zoomo and Whizz offer daily, weekly and monthly rentals. Joco\u2019s network of docked e-bikes are available for six-hour per day rentals for $65 per week. Whizz and Zoomo provide e-bike subscriptions for $179 per month and $199 per month, respectively.<\/p>\n

\u201cThere is no doubt that this is a positive step forward, but the pay issue has been researched and studied, and this is simply not enough money for this job,\u201d Veena B. Dubal, professor of law at the University of California College of the Law, San Francisco, told TechCrunch. \u201cThis is dangerous work, and the cost of living in NY is quite high. The predictability and raise it will offer workers is welcome, but, again, it\u2019s just not enough.\u201d<\/p>\n

The general sentiment among deliveristas who submitted open comments to the proposal mirrors Dubal\u2019s. Many have said they suffered accidents, theft and assaults while on the job, none of which is covered by the companies because workers are still considered independent contractors.<\/p>\n

\u201cNow that we are about to achieve the minimum wage, the new challenge will be for these companies to comply with the proposal issued by the city, so it is important to highlight the importance and also the responsibility that we workers have to denounce, report any abuse that these companies may have in this process of change that must now be in favor of us workers,\u201d wrote a worker named Vik. \u201cIt is a historic moment that after years of free labor now thousands of people will benefit.\u201d<\/p>\n

Working hard or hardly working<\/h2>\n

Companies, meanwhile, argue that the ruling will have adverse effects on delivery workers. Spokespeople from DoorDash and Grubhub said that having a minimum wage would require the companies to make platform changes that may harm gig workers.<\/p>\n

For example, the companies might start reducing platform access for workers who don\u2019t accept every gig or who work part time. Those who remain on the platform will have to work almost twice as hard. A study<\/a> from the DCWP projects that deliveries will increase from 1.6 to 2.5 per hour.<\/p>\n

\u201cThe city is lying to delivery workers \u2013 they want apps to fund this increase by eliminating jobs and reducing tipping while forcing the remaining workers to deliver orders faster,\u201d said Josh Gold, an Uber spokesperson.<\/p>\n

While gating access to the platform for part-time workers is certainly a potential outcome, Sergio Avedian, senior contributor at The Rideshare Guy<\/a> and self-proclaimed UberEats \u201ccherry picker,\u201d says demand for delivery workers is probably high enough, especially in NYC, for there to remain a mix of full and part-time workers.<\/p>\n

\u201cUber is saying, \u2018Now, we\u2019re gonna force these people to run their asses off,\u2019\u201d said Avedian. \u201cWell, they\u2019re doing that anyway in NYC.\u201d<\/p>\n

Companies may also have to make platform changes to ensure workers aren\u2019t being paid double time by different apps. Many gig workers do what Avedian calls \u201cdirty apping,\u201d which means swapping between apps to pick up as many gigs as possible. Avedian thinks companies will track workers\u2019 locations more efficiently to be able to catch them picking up orders for other apps on the sly.<\/p>\n

\u201cThey may put in these restrictions on workers, telling them they must take every order now that I\u2019m paying your minimum wage. No cherry picking,\u201d said Avedian.<\/p>\n

Making sure delivery workers stay loyal to each platform will help keep things tidy for app companies, but it also might lead into the slippery slope of employment. Because if a worker can only work for one company and is required to fulfill every order that is sent to them, then it\u2019s much harder for app companies to make the case that workers are still independent contractors.<\/p>\n

Avedian also pointed out that the ruling doesn\u2019t include any caveats of delivery workers giving up the right to collective bargaining or unionizing, nor does it imply that workers agree to stay independent contractors.<\/p>\n

\u201cIn most places where Uber agrees to a rate hike for drivers, the drivers gave up their rights and said, \u2018Okay, we\u2019re gonna stay independent, just give us higher rates,\u2019\u201d said Avedian. \u201cAll of these gig companies are concerned now and they\u2019re trying to nip it in the bud at the start of something.\u201d<\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Science, Tech, Technology<\/br>
\n<\/br>
\nSource:
https:\/\/techcrunch.com\/2023\/06\/13\/nobody-is-happy-with-nycs-18-delivery-worker-minimum-wage\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/06\/13\/nobody-is-happy-with-nycs-18-delivery-worker-minimum-wage\/ Nobody is happy with NYC\u2019s $18 delivery worker minimum wage 2023-06-13 21:41:12 New York City has established a new minimum wage for food delivery workers who deliver for platforms like Uber Eats, DoorDash, Grubhub and Relay. It should be a historic win for gig workers, but both delivery workers and companies are unhappy with […]<\/p>\n","protected":false},"author":1,"featured_media":34907,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,17,8],"tags":[],"class_list":["post-34906","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science","category-tech","category-technology"],"yoast_head":"\nNobody is happy with NYC\u2019s $18 delivery worker minimum wage - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2023\/06\/13\/nobody-is-happy-with-nycs-18-delivery-worker-minimum-wage\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nobody is happy with NYC\u2019s $18 delivery worker minimum wage - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source:https:\/\/techcrunch.com\/2023\/06\/13\/nobody-is-happy-with-nycs-18-delivery-worker-minimum-wage\/ Nobody is happy with NYC\u2019s $18 delivery worker minimum wage 2023-06-13 21:41:12 New York City has established a new minimum wage for food delivery workers who deliver for platforms like Uber Eats, DoorDash, Grubhub and Relay. 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