A federal judge in Manhattan has decided against DoorDash and Uber Eats. The delivery giants tried to stop New York City from implementing new tipping laws meant to benefit delivery workers.
Starting Monday, customers will now see a tipping option at checkout, with a minimum set at 10%. This change aims to help thousands of delivery workers earn more. It follows recent city efforts to improve working conditions and wages for these workers. Earlier this month, city regulators accused the two companies of potentially costing delivery workers around $550 million by changing their app designs to make tipping less visible.
Uber and DoorDash filed a lawsuit last month. They argued that the new law infringed on their free speech rights by making them present a government-mandated message. They sought to block the law and even requested financial compensation. However, U.S. District Judge George B. Daniels ruled against them, stating they hadn’t shown that blocking the law would be in the public’s interest.
In response, a DoorDash spokesperson expressed concern about potential declines in orders for small businesses in New York, stating, “We’re disappointed in this ruling but will continue to fight to protect local businesses and consumers.”
City Councilmember Shaun Abreu, who sponsored the tipping legislation, celebrated the ruling. He emphasized that this decision represents a victory for delivery workers, many of whom work in harsh conditions.
Workers’ rights advocates also welcomed the ruling. Ligia Guallpa, who leads the Worker’s Justice Project and co-founded Los Deliveristas Unidos, highlighted that delivery workers are crucial and shouldn’t be treated as disposable.
Samuel Levine, the city’s commissioner for Consumer and Worker Protection, supported the ruling, emphasizing that large companies must follow laws that protect both workers and consumers.
The landscape of gig economy workers is shifting, especially in cities like New York, where regulations are evolving. According to a recent report from the Economic Policy Institute, gig workers are traditionally underpaid compared to their full-time counterparts, making measures like this essential for improving their financial situations.
As debates around worker rights continue, social media is buzzing with reactions. Many users express support for the new law, highlighting the need for fair compensation. This development indicates a growing awareness of the challenges that gig workers face, and it appears that more cities might follow suit in the quest for equitable treatment.
For further details on the implications of gig economy legislation, you can explore the Economic Policy Institute’s findings.
