Uber, DoorDash sue New York City over minimum wage law

July 9, 2023

By Daniel Wiessner

(Reuters) – Uber Technologies Inc, DoorDash Inc 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 Inc 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, DoorDash sue New York City over minimum wage law — People gather during a rally held by Uber drivers on strike outside of the Uber offices in New York City, U.S., January 5, 2023. REUTERS/Andrew Kelly/File Photo

Grubhub Inc 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.