Uber, DoorDash sue NYC over minimum-wage law

Uber Technologies, DoorDash and other app-based food delivery companies filed lawsuits on Thursday seeking to strike down New York City’s novel law setting a minimum wage for drivers.

The companies filed separate complaints in New York state court claiming the law, which takes effect next week, is based on a misunderstanding of how the food delivery industry works.

Relay Delivery also filed a lawsuit in the same court claiming the law will put the New York-based company out of business unless it raises the fees it charges to restaurants.


Uber drivers portesting outside of the Uber offices in New York City earlier this year.
Uber drivers protest outside of the Uber offices in New York City earlier this year.
REUTERS

Uber, DoorDash, Grubhub and others claims the law is based on a misunderstanding of how the food delivery industry works.
Uber, DoorDash, Grubhub and others claims the law is based on a misunderstanding of how the food delivery industry works.
REUTERS

Grubhub joined DoorDash in its lawsuit.

The law will require that drivers be paid $17.96 an hour, which will rise to nearly $20 in April 2025. Companies can decide whether to pay drivers hourly or per delivery.