New York City has become the first city in the United States to mandate a minimum wage for app food delivery workers, who have been essential to the city’s economy during the pandemic. The new rule, which will take effect on July 12, 2023, will guarantee that more than 60,000 workers who deliver food for apps will earn 17.96 an hr plus tips. This is a significant increase from their current average pay of about $7.09 per hour. This is below the city’s minimum wage of $15 per hour. The new minimum wage will also rise to $19.96 per hour by 2025 and will be adjusted for inflation thereafter. The city’s Department of Consumer and Worker Protection (DCWP) said that the new

wage reflects the fact that app food delivery workers are independent contractors who pay higher taxes and have other work-related expenses than regular employees. The DCWP also said that the new wage will help reduce income inequality and improve the quality of life for app food delivery workers and their families. Some app companies expressed their disappointment and opposition to the new wage, saying that it will have negative consequences for delivery workers, customers and restaurants. They argued that the new wage will force them to increase prices, reduce flexibility, cut jobs and discourage tipping. Some app companies also threatened to sue the city over the new rule, saying that it was based on a flawed process and an extreme outcome.