2023-07-06 13:53:22 ET
Online food delivery firms DoorDash ( NYSE: DASH ), Uber Eats ( UBER ) and Just Eat Takeaway’s ( OTCPK:JTKWY ) Grubhub filed a lawsuit against New York City on Thursday in an attempt to block a new law that sets minimum wages for food-delivery workers.
The legal action was fired off ahead of a law due to go into effect on July 12 that requires online delivery companies to either pay workers around $0.50 for every minute they spend on a trip or a minimum of $17.96 per hour for the time they spend active on each app. Both those pay scales would exclude any tips earned. The current system is that workers are paid a rate per trip that is set by each app.
The online delivery specialists claimed the new law establishes a minimum wage higher than other industries and is flawed in the arrangement could could lead to multiple apps paying a worker for the same hours.
DoorDash ( DASH ) issued a statement on Thursday with an explanation that it joined industry peers in filing filing litigation against the City of New York to send a "clear and unmistakable message" that bad policies cannot go unchallenged.
Shares of DoorDash ( DASH ) were down 3.97% at 1:35 p.m. Uber Technologies ( UBER ) was down 3.66% . In London trading, Just Eat Takeaway ( OTCPK:JTKWY ) dropped 5.25% . Investment firm HSBC still has Just East Takeway.com rated at Buy and recently listed it as its top European food delivery stock.
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DoorDash, Uber Eats and Grubhub battle New York City over minimum wage law