What happened?

Delivery platform companies must pay delivery workers in New York City a minimum rate of at least $19.56 per hour in 2024.

What are the details?

In December 2023, New York City became the first major U.S. city to implement a minimum pay rate for app-based restaurant delivery workers.

As reported by Vensure HR, the pay protections were challenged by delivery platform companies, and litigation delayed enforcement.

The Appellate Division, First Department court ruled the pay protections could become effective and the DWCP began enforcing the minimum pay rate of at least $17.96 per hour in December 2023.

• The minimum pay rate has increased from $17.96 to $19.56 per hour.

• This increase is due to regulations that impose inflation kickers with the increases.

• The new rate of $19.56 per hour for 2024 is the result of a phase-in rate of $18.96 plus an inflation adjustment of 3.15 percent.

• According to these regulations, the rate will further increase to $19.96 per hour plus an additional adjustment for inflation when fully phased in on April 1, 2025.

• After this date, annual adjustments will be announced.

Business Considerations

• Covered entities should update the tariff if they have not done it already.

Source References

• New York’s Pay Protections for Delivery Drivers Temporarily Blocked – A Reminder (VensureHR)
• New York City App-Based Workers’ Minimum Pay-Rate Increases (Jackson Lewis P.C.)
• Judge Affirms Pay Raise for Food Delivery Workers in New York (The New York Times Company)

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