Uber Technologies Inc, DoorDash Inc and other app-based food delivery companies filed lawsuits on Thursday seeking to strike down New York City‘s novel law setting a minimum wage for drivers.
The companies filed separate complaints in New York state court claiming the law, which takes effect next week, is based on a misunderstanding of how the food delivery industry works.
Relay Delivery Inc also filed a lawsuit in the same court claiming the law will put the New York-based company out of business unless it raises the fees it charges to restaurants.
Grubhub Inc joined DoorDash in its lawsuit.
The law will require that drivers be paid $17.96 an hour, which will rise to nearly $20 in April 2025. Companies can decide whether to pay drivers hourly or per delivery.
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