NYC Delivery Worker Rights: New Bills Pass to Improve Conditions

New Legislation Improves Conditions for NYC Gig Workers

The New York City Council has enacted legislation designed to enhance pay and working conditions for delivery personnel employed by applications such as Grubhub, DoorDash, and Uber Eats. Specifically, the new laws grant delivery workers the right to utilize restaurant restroom facilities, establish limits on delivery distances, mandate minimum payments for each completed trip, and guarantee the full remittance of tips to the workers.

A First-of-its-Kind Initiative

This legislative package represents the inaugural effort of its kind within a major U.S. city. It establishes a significant precedent for governmental involvement in shaping the dynamic between food delivery companies and their extensive network of independent contractors.

The development of these bills was a collaborative process, incorporating feedback from Los Deliveristas Unidos (LDU).

The Role of Los Deliveristas Unidos

LDU is a coalition primarily composed of immigrant app-based delivery workers. It originated within the Workers Justice Project and has actively advocated for improved working conditions throughout the course of the pandemic. In April, the group formally aligned with SEIU Local 32BJ, the largest union representing service workers in New York City.

According to the LDU website, a harsh reality exists where many food delivery workers dedicate up to 12 hours daily to work, often in inclement weather, yet still struggle to earn sufficient income to support their families.

Risks Faced by Delivery Workers

Organizers within LDU have highlighted that gig workers are often financially motivated to work during hazardous weather conditions, such as rain and snowstorms. This can create a situation where dangerous conditions become an opportunity to increase earnings.

During Hurricane Ida, despite 13 fatalities and severe flooding, delivery workers continued fulfilling orders, even wading through several feet of water. While DoorDash and Grubhub temporarily suspended services in certain areas, many workers continued seeking bonuses and incentives, potentially jeopardizing their safety.

Wage Struggles and Company Profitability

The circumstances surrounding Hurricane Ida underscored a long-standing issue: delivery app contractors often struggle to achieve a living wage. This incentivizes them to accept risks for additional income. Simultaneously, companies like DoorDash, Uber Eats, and Grubhub have not consistently demonstrated profitability, even with increased business during the pandemic.

Findings from the LDU Report

A survey conducted by LDU, encompassing over 500 app-based couriers in NYC, revealed an average net hourly pay of approximately $12.21, including tips. This falls short of New York City’s $15 minimum wage. Workers are also responsible for their own transportation costs, frequently utilizing e-bikes. Furthermore, they are vulnerable to theft.

The report also indicated that 49% of respondents had experienced an accident or crash while on delivery, with 75% of those individuals covering medical expenses personally. However, DoorDash maintains that Dashers in Manhattan earn an average of $33 per hour.

Company Responses

A DoorDash spokesperson stated the company acknowledges the unique challenges faced by delivery workers in New York City and shares the objective of developing policies that benefit Dashers. They highlighted previously announced initiatives to enhance Dasher safety, increase earnings, and improve restroom access. DoorDash intends to continue collaborating with stakeholders, including the City Council, to support delivery workers without creating unintended consequences.

DoorDash also expressed concerns regarding the bathroom access bill, noting it does not mandate restaurants to provide access. Instead, it requires companies like DoorDash to incorporate provisions into their contracts with restaurants to ensure restroom availability for delivery workers.

Grubhub voiced support for the bills, characterizing them as sensible measures to support the hard work of delivery workers. The company stated that ensuring a living wage and restroom access is not only a good idea but also the right course of action.

Broader Implications for Gig Workers

Workers for other gig economy platforms face similar challenges. The Gig Workers Collective, representing approximately 13,000 Instacart contractors, recently urged customers to delete the app until Instacart addresses five demands related to pay and working conditions.

Because these workers are classified as contractors rather than employees, they lack certain protections, such as a guaranteed minimum hourly wage. Instacart has previously supplemented workers’ wages with their tips.

Looking Ahead

For the approximately 80,000 delivery workers in New York City, this legislation represents a positive step forward. However, the extent to which tech companies will be held accountable for implementing these minimum wage standards and fulfilling workers’ needs remains to be seen.