By Daniel Wiessner
(Reuters) – A New York state judge on Thursday rejected a bid by Uber Technologies Inc, DoorDash Inc and other gig economy firms to block New York City’s novel law setting a minimum wage for app-based delivery workers.
The decision by New York Acting Supreme Court Justice Nicholas Moyne will allow the law to take effect pending the outcome of the companies’ lawsuit. Moyne in July had stopped the law from being implemented while he considered the companies’ request to block it until the case is resolved.
The law will require companies to pay delivery workers $17.96 an hour, which will rise to nearly $20 in April 2025. Companies can decide whether to pay workers hourly or per delivery, which would be based on the hours workers are logged into the app.
Uber, DoorDash, Grubhub Inc and food delivery service Relay Delivery Inc claim the law will force them to shrink service areas to absorb the new labor costs, ultimately harming customers and restaurants.
(Reporting by Daniel Wiessner in Albany, New York; Editing by Chris Reese)
