Since April 1st, New York City has raised the minimum wage standards for restaurant delivery workers and food delivery workers based on applications (Apps) to at least $21.44 per hour, excluding tips. This wage will also be adjusted annually based on future inflation rates. This marks a milestone policy aimed at boosting the wages of tens of thousands of workers in their final stage.
The announcement was made on Tuesday (April 1st) by the Mayor’s Office and the Director of the Department of Consumer and Worker Protection (DCWP), Vilda Vera Mayuga.
According to the Mayor’s Office, this increase has been implemented in phases since June 2023. The $21.44 wage includes an increase from the final stage at $19.96 and a 7.41% inflation adjustment. Since enforcement began in December 2023, delivery applications have paid over $700 million in additional wages to workers. For more detailed information, please visit the link: https://tinyurl.com/485vcf82
This minimum wage standard not only considers wage parity with the state’s minimum wage but also takes into account the lack of traditional employment benefits and the equipment costs delivery workers typically bear. Officials emphasized the wide economic impact of this policy on New York’s working class. Before the implementation of the minimum wage standard, workers earned an average of $5.39 per hour (excluding tips).
“The government is working every day to help New Yorkers put money back in their pockets, including our city’s delivery workers,” Adams said. “Our pioneering minimum wage standard is doing just that, returning hundreds of millions of dollars to delivery workers.”
In September 2021, the New York City Council passed Local Law 115, requiring DCWP to study the wages and working conditions of app-based restaurant delivery workers and establish minimum wage rates based on the study results.
DCWP released its research report in 2022, which utilized data from restaurant delivery applications, surveys of delivery workers and restaurants, testimonials, extensive discussions with stakeholders, and publicly available data.
Director Mayuga stated that the policy has been successful, maintaining the operations of restaurant delivery applications while increasing income. She said, “Delivery workers, like all workers, deserve fair wages for their labor.”
Chinese delivery worker Xiao Jin recently joined the delivery industry. He noted that establishing a minimum wage undoubtedly provides a “guarantee” for delivery workers’ income but found that the industry is not as lucrative as he imagined.
“Although people continue to order takeout, due to the current economic situation, tips are getting smaller,” he said. “With the rising prices of eggs, restaurants, and supermarkets, customers are less willing to spend money, so this line of work is not as profitable as it used to be. Now it’s just a job, sometimes earning very little.”