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New York City App-Based Workers’ Minimum Pay-Rate Increases

22 May

Update Applicable to:Effective date
All covered New York City employers and multi-state businesses that have at least 1 food delivery worker defined as a third-party food delivery service or courier service.Immediately

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

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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