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Door Dash updates tipping policy after NYC passes minimum wage law

DoorDash and similar food delivery services are changing their tipping policies. new york city The government's decision to increase the minimum wage for app workers.

DoorDash and UberEats refrain from tipping until the food is delivered and no longer offer tips as an optional incentive to encourage faster delivery.

“As we have repeatedly made clear in recent months, an inadequate and extreme minimum wage for food delivery workers in New York City will have a significant impact on everyone who uses our platform. .”

New York City sues food delivery company over new minimum wage law

Delivery man riding a bicycle in New York City. Grubhub, DoorDash, and Uber Eats sued New York City earlier this year to block new minimum wage rules for food delivery workers. (Leonardo Munoz/VIEWpress/Getty Images)

“Unfortunately, these regulations will significantly increase the cost of facilitating deliveries in New York City and will require our company to make a number of operational changes. We are providing updates on what the situation will be for both Dashers and Dashers.”

Uber Technologies, DoorDash and New York City-based Relay Delivery all filed separate lawsuits against the city earlier this year seeking temporary restraining orders to halt the wage rate requirement, which is scheduled to go into effect on July 12. woke up. Grubhub also joined DoorDash in its lawsuit.

Employees of app-based delivery services are typically gig workers who operate as independent contractors, so minimum wage laws generally do not apply to them. But New York City is the first municipality to change the law, and officials say the move will lift thousands of residents out of poverty.

DoorDash warns customers who don't tip

door dash new york

A DoorDash delivery driver picks up an order outside a Chick-fil-A restaurant in Brooklyn, New York. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)

Supporters of the law argue that the average hourly wage for delivery workers in the city is $11, not including fees, far below the city's $15 minimum wage. The city currently requires delivery workers to earn a minimum wage of $17.96 an hour, which is expected to rise to nearly $20 an hour in April 2025.

Delivery apps now claim that higher prices and fees will shift the financial burden onto users.

“These new regulations will force us to increase our order fees in New York City. To better balance the impact of these new costs, we are increasing our order fees in the DoorDash app. “Move tip option after checkout,” DoorDash said in the article. statement.

door dash new york

A restaurant in the Brooklyn borough of New York City in the United States carries the DoorDash logo. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)

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“New York City has announced new rules that will change how Uber Eats works in the region,” Uber Eats told delivery drivers in a similar statement. “Now you earn at least $29.93 for every hour you spend making a delivery. Delivery time begins when you accept a delivery request and ends when the delivery is completed or cancelled.”

The company added: “Sign-up bonuses and tips are not included in minimum earnings. Your tips will continue to go to you in full.”

Fox Business' Breck Dumas contributed to this report.

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