DoorDash, Grubhub, and Uber Eats have reached a settlement with New York City in lawsuits challenging local laws that raised the minimum wage for delivery workers and capped the fees delivery services could charge restaurants. The agreement, filed in federal and state courts in Manhattan, allows for some adjustments to the current fee caps and assumes the City Council will approve the proposed legal amendments. The companies agreed to permanently dismiss their lawsuits, originally filed in response to regulations introduced during the COVID-19 pandemic, which they claimed unfairly limited their ability to operate profitably in the city.
Under the current law, which took full effect on April 1, delivery workers now earn a minimum of $21.44 per hour before tips, up from $5.39 in 2022. The original rules limited delivery platforms to charging restaurants no more than 15% for delivery services and 5% for additional offerings, restrictions the city made permanent in August 2021. A spokesperson for Mayor Eric Adams called the settlement a win for workers, pointing to delayed earnings due to prolonged litigation. The companies previously argued that the laws infringed on their contractual rights and forced them to absorb major losses. Grubhub welcomed the settlement, highlighting its benefits for restaurant partners.
