New York City passes protections for food delivery workers
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A delivery person for Doordash rides his bike in the rain during the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S., November 13, 2020.
Reuters Lawmakers in New York City passed several bills on Thursday that seek to improve working conditions and set minimum pay for food delivery workers for companies like , and Eats.| Reuters
Lawmakers in New York City passed several bills on Thursday that seek to improve working conditions and set minimum pay for food delivery workers for companies like Grubhub, DoorDash and Uber Eats.
New York City is now the first city to adopt comprehensive legislation that regulates delivery, something which was under greater scrutiny after the pandemic and the recovery from Hurricane Ida.
Here are some of the protections in the bills that delivery services will need to abide by:
- Drivers can set a maximum distance per trip they travel.
- Deliveries can not charge drivers for their wages and must pay workers once per week.
- You can refuse to take trips across bridges and tunnels.
- Before a trip can begin, apps must provide information to the driver including the pickup location and destination as well as the time and estimated distance.
- Deliveries cannot charge couriers or drivers for the use of insulated bags.
- Deliveries apps that use food delivery services can not ask for tips. They must disclose the amount paid, as well as whether cash is accepted or if it will be available right away.
- Workers must be credited gratuities by apps. They also need to inform the worker how much they were paid, and whether or not a tip was removed.
- Apps must inform delivery workers of all compensation received, including gratuities.
- Deliveries must have a provision that permits couriers to use restrooms when they pick up orders.
The Department of Consumer and Worker Protection is required to conduct a study of food delivery workers and set rules for the minimum payment per trip.
DoorDash spokeswoman said that they recognize the challenges faced by delivery workers in New York City. They also share the goal to identify policies that will benefit Dashers and other workers. “We will continue working with all stakeholders including the City Council in order to find solutions to all New York City delivery workers without any unintended consequences.”
Grubhub stated that it supported the bills.
Grubhub spokesperson Grant Klinzman stated that these bills “are common-sense measures to support delivery workers who worked hard every day New York’s restaurants, residents and customers.” It’s not just good business sense to ensure that they get a decent living wage and access to toilets.
Legislators in other states have tried to defend gig workers and their customers as well.
Last month, a California court ruled that Prop 22, a measure approved by a majority vote in November that exempted gig workers from state labor law, was unconstitutional. Prop 22 suggested that workers who work for ride-sharing and app-based food delivery companies be treated as contractors and should continue to enjoy certain protections and benefits, such as minimum wages.
In August, Chicago filed suits against DoorDash and Grubhub for allegedly using unfair business practices and deceiving customers. The suits were branded “baseless” by both companies.
Meanwhile, Uber, DoorDash and Grubhub recently sued New York City over a bill that limits how much the companies can charge restaurants. In July, DoorDash and Grubhub sued San Francisco after the city introduced a permanent 15% delivery fee cap.
And DoorDash filed a separate suit against New York City earlier this month over a law that requires delivery companies to share more customer data with restaurants.
Uber representatives were not available immediately for comment.
Lauren Feiner from CNBC contributed to the report.
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