NYC App-Based Delivery Drivers and Uber/Lyft Drivers Minimum Wage Laws
New York City established a minimum wage pay-rate for app-based delivery workers that went into effect July 12, 2023. Starting July 12, 2023 New York City’s app-based delivery workers must be paid at least $17.96 an hour, not including tips.
NYC has approximately 60,000 app-based delivery workers operating in the city. If you’ve been out on the streets in NYC lately, you know that app based delivery drivers are every where. Those delivery workers, who courier takeout, groceries and other goods, are paid an average of $8-$11 an hour, after factoring in tips and expenses. This is less than New York’s $15 minimum wage, according to an analysis by the city. The deliver workers also cover their own health insurance, business expenses and additional taxes. As of July 12, 2023, they will have protection and the minimum wage will increase annually.
What is the minimum wage for NYC delivery drivers?
At least $17.96 per hour (approximately $0.30 per minute), not including tips. This rate will increase to $19.96 per hour when it is fully phased in on April 1, 2025, with an annual adjustment for inflation. Apps that pay for trip time only (time between accepting a delivery offer to time dropping off the delivery) must pay at least $0.50 per minute of trip time, not including tips.
How do companies comply with the law?
Businesses (e.g. the Apps) can choose how to pay workers the minimum rate. They can pay delivery workers per trip, per hour worked or, alternatively, develop their own formulas. The city is staggering the pay increases over a period of two years in order to give delivery app companies time to adjust to the new rates.
If you have questions about your pay as a delivery driver or app based company, contact the wage and hour lawyers at Mansell Law. We know NYC minimum wage and are experiences in this area of law.
