New York doubles down on delivery wage disaster
Briefly

New York doubles down on delivery wage disaster
"In July, the New York City Council passed numerous bills that it claimed were designed to protect grocery delivery drivers. This legislative package introduced new rules, requiring delivery apps to include a 10-percent tipping option either before or at the time of the order (vs. afterwards, where the option exists now), and mandated that app-based platforms pay delivery drivers within seven days of the end of a pay period."
"One of the most notable bills would extend New York City's minimum wage mandate from restaurant delivery drivers to drivers delivering groceries. The rate, first set at $19.96 per hour in 2023, has risen to $21.44 per hour. Though current Mayor Eric Adams eagerly the original law ( at the time, "Our delivery workers have consistently delivered for us-now, we are delivering for them"), he surprisingly the new expansion."
"Despite mayoral resistance, the City Council has decided to plow forward anyway by overriding Adams' veto. New York's experiment with delivery driver wage mandates hasn't gone well. Pay went up after the 2023 rule kicked in, but so did prices-and many drivers left the market altogether. The city saw an 8 percent drop in its delivery workforce, while food delivery costs rose 10 percent, including a 12 percent jump in"
New York City will extend its minimum wage mandate from app-based restaurant delivery drivers to grocery delivery drivers, raising the rate from $19.96 in 2023 to $21.44 per hour. The City Council also approved rules requiring apps to include a 10-percent tipping option before or at order time and to pay drivers within seven days of a pay period's end. Mayor Eric Adams vetoed the expansion citing concerns about raising grocery costs, but the Council overrode his veto. The 2023 restaurant delivery mandate raised driver pay while coinciding with an roughly 8 percent drop in the delivery workforce and a 10 percent rise in food delivery prices.
Read at Reason.com
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