Judge Blocks Drastic Minimum Wage Increase

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(PatriotNewsDaily.com) – A New York state judge temporarily halted the rule stating that food delivery companies in New York City were obliged to pay drivers an hourly minimum wage of close to $18.

In the preliminary injunction on Friday, New York State Supreme Court Judge Nicholas Moyne paused the rule which was set to go into effect a new week after DoorDash and Grubhub filed a case jointly and Uber filed its own independent case on Thursday. Prior to this injunction, the rule was set to go into effect next week.

The hearing has been scheduled for July 31st, and Moyne is going to hear arguments on whether the injunction should remain during the legal challenge to the rule.

The rule was established by the New York City Department of Consumer and Worker Protection and dictated that drivers working through apps like Uber Eats, DoorDash, and other food delivery companies should be receiving at least $17.96 per hour. This would mark an increase of more than $10 as currently they are making $7.09 per hour.

The minimum wage has overall increased to $18.96 and is expected to increase by another dollar in April 2025. If the rule goes ahead, it will be the first time that such a policy for food delivery drivers has been put in place. Mayor Eric Adams has argued that this rule was essential for ensuring that delivery drivers would be able to receive the support they need, but food delivery companies have opposed the plan. In fact, they have argued that this increase would mean that each consumer would spend an average of $5 more per order, which would reduce the number of orders.

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