NEW YORK — App-based restaurant delivery workers in New York City are now guaranteed a minimum pay rate of $21.44 per hour before tips, marking the final phase of a landmark policy aimed at increasing pay for tens of thousands of workers.
Key Points
- NYC raised the minimum pay rate for app-based restaurant delivery workers to $21.44 per hour before tips.
- The increase follows a phased rollout that began in June 2023 and includes a 7.41% inflation adjustment.
- Since enforcement began, delivery apps have paid out more than $700 million in additional wages to workers.
Mayor Eric Adams and Department of Consumer and Worker Protection (DCWP) Commissioner Vilda Vera Mayuga announced the rate increase Wednesday, which reflects the scheduled raise to $19.96 along with a 7.41% inflation adjustment. The phased-in pay hike stems from a rule finalized in June 2023 and fully enforced by DCWP since December.
“Our first-in-the-nation minimum pay rate is doing exactly that, giving hundreds of millions of dollars back to delivery workers,” said Mayor Adams.
Prior to the regulation, delivery workers earned an average of $5.39 per hour before tips, according to the city’s data. Since implementation began, app companies have paid out more than $700 million in additional wages to delivery workers across the five boroughs.
The minimum pay rate accounts not only for wage parity with the state’s minimum wage but also for the lack of traditional employment benefits and the cost of equipment delivery workers typically bear themselves. Officials emphasized the broader economic impact of the policy on working-class New Yorkers.
“Providing a stable and predictable minimum pay rate for some of our hardest working New Yorkers has been one of the highlights of our administration’s agenda,” said Deputy Mayor Adolfo Carrión, Jr.
The pay rate was created under Local Law 115, passed by the City Council in 2021, which required DCWP to examine pay and working conditions for app-based food delivery workers. The department’s 2022 study drew from company data, worker and restaurant surveys, public testimony, and stakeholder input.
Commissioner Mayuga called the policy a success, noting it improved earnings while maintaining restaurant delivery app operations. “Delivery workers, like all workers, deserve to be paid fair wages for their labor,” she said.