A judge has placed a temporary stop to a New York City measure requiring delivery workers to be paid a minimum wage.
The policy implemented an almost $18-per-hour wage, until lawsuits arose from some of the companies employing these workers made their way to the courts.
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New York State Supreme Court Judge Nicholas Moyne issued a preliminary injunction Friday to keep the law from going into effect next week, after joint lawsuits were filed by DoorDash and Grubhub, and separately by Uber earlier this week.
The next hearing for both parties to state their arguments has been set for July 31 for Moyne to weigh whether the injunction should remain in place as the legal battle ensues.
The minimum wage would be set to rise to $18.96 hourly in April, and $19.96 hourly in the same month the following year.
DoorDash and Grubhub have made their case in court against the measure which they describe as “drastic,” and placing “immediate” consequences for those involved, including the over $5 increase for New York City consumers, per order. Both companies said they believe this would ultimately lead to a reduced demand for their services, in addition to harm to their respective reputations and finances.
Uber, on the other hand, estimates the cost of orders would increase by almost $6, before inflation, and orders would decline by almost 20 percent. This, it says, is the result of “flawed” data based on “biased” surveys and “unrealistic expectations.”
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Mayor Eric Adams (D) justified the minimum-wage move as giving support to delivery drivers, to the dismay of the food delivery companies who directly argue against the measure.
Uber, as well, said having the policy done correctly outweighs its quick implementation.
