NYC sets a new minimum wage for app-based delivery drivers

Gig economy jobs are not easy. But in New York City, some of them are about to pay more. The yearslong push for better pay for gig workers has made some progress over the last month.

In late May, Minnesota’s Senate passed a bill guaranteeing a minimum wage of $1.45 per mile and $0.34 per minute for drivers using rideshare apps such as Uber and Lyft. The bill also calls for added benefits, including increased transparency on pricing and wages and an appeals process for drivers whose accounts are deactivated.

Uber and Lyft called for Minnesota Gov. Tim Walz to veto the bill, which they opposed through every stage of the process. They warned that they may need to reduce services in the states affected by laws like this one.

Ultimately, Walz ended up vetoing the bill because, he said in a letter to legislative leaders, it “could make Minnesota one of the most expensive states in the country for rideshare, potentially putting us on par with the cost of rides in New York City and Seattle—cities with dramatically higher costs of living than Minnesota.” Minnesota’s sponsors in the state house and rideshare driver communities remain committed to passing this legislation, according to the Associated Press.

On Sunday, New York City Mayor Eric Adams signed a law guaranteeing a $17.96 per hour minimum wage for drivers working for delivery apps. The regulation affecting around 65,000 workers will be enforced by the city’s Department of Consumer and Worker Protection.

“We are making sure that working people who power this sector are getting their fair share,” Adams said. “There are contract workers who have to cover lots of costs themselves, paying for the bike or car or medical bills, if they get sick or hurt. And they deserve a raise.”—AK