NYC restaurant delivery workers to get big raise, but not everyone is happy

Pay raise for app-based restaurant workers

Food delivery workers are getting a raise from $7 an hour to $20 by 2025. FOX 5 NY's Ashlie Rodriguez has the details.

NEW YORK CITY - New York City restaurant delivery workers will be getting a raise from $7 per hour to $19.96 by 2025.

The city announced Sunday that app-based restaurant workers will be getting the raise, a first for any city in the country and affecting the 65,000 delivery workers that cycle up and down the streets of every borough.

"At base, restaurant delivery workers serve our city in rain, snow, and extreme heat, only to earn less than minimum wage with no benefits," said Vilda Vera Mayuga, NYC Department of Consumer and Worker Protection commissioner.

The Department of Consumer and Worker Protection found on average, a delivery worker makes around $7.09 per hour. But now the city is forcing the apps to raise that to $17.96 by July 12, and eventually hitting $19.96 by 2025.

Apps will have to prove to the city they're following the rules. That means by July, they either have to show they're paying delivery workers $17.96 an hour, or $0.50 cents per minute. The city promises it will not impact restaurants that are protected by fee caps. But it could impact how customers tip.

The apps are not happy. GrubHub wrote FOX 5: "While we believe New York City had good intentions, we are disappointed in the DCWP’s final rule, which will have serious adverse consequences for delivery workers in New York City. Unfortunately, New York City chose not to partner with the industry on a solution that would have benefited all aspects of the gig economy."

"Today’s deeply misguided decision by the DCWP ignores the unintended consequences it will cause and sadly will undermine the very delivery workers it seeks to support. Given the broken process that resulted in such an extreme final minimum pay rule, we will continue to explore all paths forward — including litigation — to ensure we continue to best support Dashers and protect the flexibility that so many delivery workers like them depend on," a DoorDash spokesperson offered. "Simply put: Dashers, merchants, and all New Yorkers deserve better than extreme policies like this. We hope that we can find a path forward that allows us to continue to best serve the communities across New York City."

Uber Eats said in a statement:

And some delivery workers agree, one telling FOX 5, "It's bad because [there are] too many drivers. They're not going to give hours to all of them. They only give you like 3–4 hours a day. That's not money."