NEW YORK (1010 WINS) — The New York City Department of Consumer and Worker Protection announced a proposal Wednesday for app-based delivery workers to receive a minimum pay of $23.82 per hour which would factor in expenses and workers compensation insurance.
The first-of-its-kind proposal would affect more than 60,000 workers who deliver food for restaurants through apps, many of whom are paid on average $7.09 per hour, excluding tips.
“Delivery workers have delivered for New York time and again, including during the COVID-19 pandemic — now it’s time for New York to deliver for them,” said Mayor Eric Adams. “This new proposed minimum pay rate would help ensure a fairer pay for delivery workers for third-party apps, providing more stability for 60,000 workers across our city. We look forward to hearing public comment on the new proposed rules as we prepare to implement the law.”
The proposed wage breakdown would be a $19.86 base rate, $2.26 to cover workers’ expenses, and $1.70 to reflect a lack of workers’ compensation insurance. The plan will have to go through a public hearing for consideration of public comments and would initially be $17.87 after finalized before being phased-in on April 1, 2025.
Delivery workers would be paid based on trip time, time spent delivering, on-call time, time spent connected to the app and waiting for a trip.
“Restaurant delivery workers serve our city every day, in all weather conditions, only to earn less than minimum wage with no benefits,” said DCWP Commissioner Vilda Vera Mayuga. “This proposed minimum pay rate would help guarantee delivery workers a more dignified pay and rightfully establish pay equity with other workers who earn a minimum wage.”
Rates were determined based on three factors. The base pay matches the NYC Taxi & Limousine Commission’s (TLC) minimum earnings standard for ride-hail drivers.The expense amount reflects the average expenses incurred by e-bike workers and the workers compensation rate reflects the workers’ compensation benefits that must be provided to comparable delivery workers.
A majority of delivery workers are between the ages of 18-34, 75% of whom are male and 91% are non-white or Hispanic, according to a report released by the DWCP.
The report also found most delivery workers use e-bikes, mopeds, cars and to a lesser extent, walking. DWCP also found that delivery workers experienced the highest injury rates of any industry in the city. Since 2020, 33 delivery workers have died while on the job. Another 33% of app delivery workers who use e-bikes or mopeds have been assaulted.
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