Delivery workers made $104M more in tips after NYC began enforcing new law
3 hours ago
- New York City enforced a law against deceptive tipping practices by delivery apps, resulting in an additional $104 million in tips for delivery workers.
- Mayor Mamdani declared an end to corporate abuse being accepted as a cost of doing business in NYC.
- Each of the city's 70,000 delivery workers received an average yearly pay increase of $2,287 due to the increased tips.
- In 2023, the City Council passed a guaranteed minimum wage for delivery workers, now $22.13 per hour.
- Apps like Uber Eats and DoorDash moved the tipping option to after delivery to offset the minimum wage, costing workers over $550 million in tips.
- The apps sued to block the requirement for tipping at checkout, but federal judges rejected their attempts before the law took effect in January.
- Tips nearly doubled after enforcement, proving apps wrong about New Yorkers' willingness to tip, according to Commissioner Sam Levine.
- Restaurants saw a surge of over 700,000 orders per week after the minimum pay rate took effect.
- Average tips per delivery doubled but remain lower than before the apps changed their tipping options in November 2023.