Proposal announced for city delivery drivers to receive increase in minimum pay rate
The city's Department of Consumer and Worker Protection on Wednesday announced a first-of-its-kind proposal that would increase the minimum pay rate for app-based delivery drivers.
The proposal would call for a minimum pay rate of $23.82 per hour, an amount officials say reflects just how essential New York City's more than 60,000 app-based delivery workers are.
According to the department, delivery workers are paid $7.09 per hour - excluding tips - and because they are considered independent contractors, they go without benefits such as health insurance.
"The takeout orders definitely help business,” said Mamasushi restaurant manager Joseph Schaentzler. “I mean, look, for them, they're going all over the place, the price of gas right now, I definitely think it is a good thing for them to get an increase."
Food delivery services such as DoorDash say their concern isn't with creating a minimum pay rate. They say it's about accurately applying that rate to the time workers spend making deliveries.
“Dashing allows so many across New York City to earn when, where, and how often they choose,” the company said in a statement. “Unfortunately, the proposed rule does not appropriately account for this flexibility.”
A public hearing on the proposed rule will be held on Dec. 16.