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Delivery apps tipping debate
FOX 5 NY's Michelle Ross takes a closer look at how this new change will work.
NEW YORK - After a legal battle in the state Supreme Court, delivery workers are celebrating a win for their pockets.
The minimum wage is now $17.96 per hour, which is up from about $7 per hour.
Ligia Guallpa is the executive director of the Worker’s Justice Project, which worked with Los Deliveristas Unidos, the labor group made up of delivery workers, to make this happen.
"I’m honored to say that the first-in-the-nation minimum pay for delivery workers is now finally a reality for workers," said Guallpa.
Mayor Eric Adams said this will improve working conditions and quality of life for the 65,000 delivery workers in New York City.
The new law has caused companies like Uber Eats and DoorDash to change their business model with tipping and new fees.
DoorDash said in part "…the ill-conceived, extreme minimum pay rate for food delivery workers in New York City will have significant consequences for everyone who uses our platform."
The tipping option will only be available after checkout in preparation for increased fees, saying this was recommended by the Department of Consumer and Worker Protection.
Commissioner Vilda Vera Mayuga claims this isn’t the case.
"I think, again, it is a business decision they’ve made," said Mayuga.
Consumers tell Fox 5 News this won’t change their tipping behavior.
"If you do exceptional with the delivery and the handoff, then you’re going to get tipped, which you deserve," one person said.
But it’s still a concern for delivery workers like Gustavo Ajche who is a leader in Los Deliveristas Unidos.
"There are workers that are happy because they’re seeing big changes and there are workers that are frustrated because they’re not seeing tips," Ajche said.
The groups claim that the apps are withholding tips.
Uber Eats and DoorDash deny this and say 100% of tips go directly to the employee.
The companies also say they're increasing the minimum pay of delivery workers to almost $30 an hour for active time, meaning time spent on picking up and dropping off, not waiting for the next order, saying if drivers do not hit the minimum, they'll be paid the difference.
The increase doesn’t end here. It will go up to nearly $20 an hour by 2025 when adjusted for inflation.