Final Phase of New York City App-Based Delivery Worker Minimum Wage is in Effect

On April 1st, 2025, New York City Mayor Eric Adams announced that the city’s full minimum wage for app-based delivery workers is in effect. Under the local ordinance, the minimum wage for app-based delivery drivers in New York City is $21.44. It will be adjusted annually to account for the rate of inflation. Here, our New York City wage and hour law attorney provides an overview of the new local wage requirements for app-based delivery workers in the city.

The Final Phase is in Place: $21.44 Minimum Wage Now in Effect 

New York City enacted the minimum wage law for app-based delivery drivers in order to address concerns about the compensation and working conditions in the gig economy. Prior to the law, many delivery workers earned as little as $7.09 per hour in direct wages. As of April 1st, 2025, app-based delivery platforms in New York City are required to pay their delivery workers a minimum of $21.44 per hour, excluding tips. The rate includes an inflation adjustment of 7.41 percent on the previously phased-in rate of $19.96. The policy—which was initially put in place back in December of 2023, has been implemented in stages to reach the last rate. There are provisions that will automatically allow for adjustments for inflation in the future.

 The Impact on Workers: Higher Wages, Fewer Tips

How has the New York City local ordinance for app-based delivery drivers changed wages so far? An initial assessment has found that the new wage law has led to a significant increase in earnings for delivery workers. The average hourly wages rose from $11.72 to $19.26 after tips in early 2024. At the same, the increase was also associated with a 60 percent decline in tips per hour. This has largely been attributed to the higher delivery fees on these apps and certain changes in app interfaces that have started to prompt users to tip after checkout.

New York City is Leading the Way, Other Jurisdictions May Follow 

There has been an explosion in the number of people working for app-based delivery services in recent years. Some work as employees, others are classified as independent contractors. It depends on the specific service and the jurisdiction. Notably, the establishment of a minimum wage for app-based delivery workers in New York City sets a major precedent in the gig economy. The policy has survived major legal challenges. Despite legal challenges from companies like Uber and DoorDash, the law was upheld by a New York state appeals court. There are a number of other jurisdictions (both local and state) considering similar changes.

 Get Help From a New York City Wage and Hour Lawyer Today

At Poulos LoPiccolo PC, our New York City wage and hour attorney has the experience that you can trust when it matters most. If you have any specific questions or concerns about a minimum wage case, please do not hesitate to contact us today for a fully confidential, no obligation consultation. We represent workers in New York City in wage and hour cases.

Source:

nyc.gov/office-of-the-mayor/news/187-25/mayor-adams-full-minimum-pay-rate-app-based-restaurant-delivery-workers-now-in