New York City Council passed a series of new laws on July 14th, expanding wage protections for delivery workers and extending minimum wage requirements to include fresh grocery delivery workers for the first time. This new legislation also covers grocery delivery platforms including Instacart, advocating for the rights of over 80,000 delivery workers across the city.
This marks another significant victory for the delivery workers’ rights movement in New York City, following the establishment of minimum hourly wage protections for delivery workers in 2021. Under current standards, the minimum hourly wage for delivery workers is $21.44, and the new laws further strengthen protections and improve the tipping system.
Key points of the new laws include: tipping prompts must appear at the time of ordering, platforms are prohibited from delaying tip options until after delivery; tip suggestions must start at 10%; wage payments must be made within 7 days after the pay period; expanding existing protections to cover all third-party delivery platform workers (including food, fresh produce, and other goods); requiring platforms to provide transparent work information, the right to use restroom facilities, distribute fire safety information, and provide insulated delivery bags; and the Department of Consumer and Worker Protection (DCWP) must investigate delivery workers’ working environments and develop minimum wage standards.
Council Member Sandy Nurse, who introduced the relevant legislation, stated that expanding minimum wage protections is about fairness, saying, “They perform the same tasks, face the same risks, and suffer the same exploitation. If your business model can’t survive while paying the minimum wage, then it’s not a successful model.”
However, an Instacart spokesperson criticized the legislation as “unreasonable,” claiming that according to city estimates, this would lead to a 46% increase in grocery delivery costs, potentially burdening low-income families and communities. Grubhub, on the other hand, stated that they will continue to work with unions and the city council to ensure that the new regulations are practical, clear, and concise.
Mayor Adams’ office stated that the city government is reviewing the relevant legislation.
With the rapid expansion of the delivery industry during the pandemic, the City Council has passed multiple laws since 2021 to protect the rights of delivery workers, covering minimum wage, working conditions, fee caps, and e-bike safety. This new law further extends coverage to all types of delivery workers.