A law set to take effect next week would decrease demand for couriers and cost companies, they say.
Delivery-app companies sued New York City on Thursday over a law that requires them to start paying tens of thousands of delivery workers a minimum wage starting next week.
DoorDash DASH , Uber UBER and Grubhub filed lawsuits against the city, which announced the law last month. It mandates that delivery workers must be paid $17.96 an hour without tips by July 12, and at least $19.96 an hour by 2025 — above the city’s minimum wage for other workers. In its lawsuit filed with the Supreme Court of New York, Uber said it would suffer “irreparable harm” if the law were to stand, in that it would “have to pass the increased costs of the Challenged Rule on to consumers” and “divert significant product and engineering resources away from planned projects and towards building new technologies to restrict courier access” and to comply with the law.
The city agency that drafted the law said it is looking forward to the law’s implementation next week.
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