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Jun 4, 2025  |  
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Misty Severi, Breaking News Reporter


NextImg:New York City sued by major food delivery services for minimum wage law

A group of food delivery services sued New York City over its new minimum wage law on Thursday, which would require the companies to pay its drivers an hourly rate.

The companies, which include DoorDash, Uber Eats, and Grubhub, filed separate suits in the New York state court, claiming the new law does not understand how the app-based food delivery services operate.

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The new law, which goes into effect next week, would force companies such as Uber Eats, and DoorDash to pay its drivers at least $17.96 an hour, despite drivers choosing their own hours. Companies could also opt to pay their drivers 50 cents for each minute they spend driving instead. Neither option include tips.

“Delivery workers, like all workers, deserve fair pay for their labor, and we are disappointed that Uber, DoorDash, GrubHub, and Relay disagree,” New York City’s Department of Consumer and Worker Protection told the Wall Street Journal Thursday. “These workers brave thunderstorms, extreme heat events, and risk their lives to deliver for New Yorkers — and we remain committed to delivering for them. The minimum pay rate will help uplift thousands of working New Yorkers and their families out of poverty.”

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The backlash from the companies occurs because drivers are considered independent contractors instead of employees, which gives drivers total flexibility when it comes to scheduling shifts, and the length the driver is on the clock. Currently, the apps pay drivers based on each individual drive, not for the length of time they work.

Thursday's lawsuit is not the first time the companies sued the city. All three businesses sued New York in late 2021 for capping the commission the companies could give restaurants. DoorDash is also suing the city because of a rule that requires the companies to share more data with the restaurants. Neither case has been closed so far.