DoorDash, Uber Eats and Grubhub Sue New York City Over Minimum-Wage Law

DoorDash, Uber Eats, and Grubhub have sued New York City over a new law that sets minimum wages for food-delivery workers, claiming that the pay rates are flawed and could lead to higher consumer prices.

DoorDash, Uber Eats and Grubhub Sue New York City Over Minimum-Wage Law
  • DoorDash, Uber Eats, and Grubhub have sued New York City over a new law that sets minimum wages for food-delivery workers.
  • The law requires companies to pay workers around 50 cents for every minute they spend on a trip or a minimum of $17.96 an hour for the time spent active on each app.
  • The companies argue that the new pay rates could be significantly higher than the minimum wage set for other industries and that compensating workers for time spent online is flawed.
  • The apps claim that the new metrics would force them to raise consumer fees and limit the number of workers who could work for each app.
  • DoorDash and Grubhub jointly filed a lawsuit, while Uber Eats and Relay filed separately.
DoorDash, Uber Eats and Grubhub Sue New York City Over Minimum-Wage Law
Apps say new pay calculus is flawed, will raise consumer prices and limit worker flexibility