§ 7-810 Minimum Pay.
RCNY § 7-810
(a)Reserved.
(b)Standard method. A third-party food delivery service, third-party courier service, or third-party grocery delivery service must make payments to food delivery workers and grocery delivery workers for their trip time and on-call time in a pay period that meet the individual and aggregate requirements of subparagraphs 1 and 2 of this subdivision, except that for pay periods that begin prior to July 1, 2026, a third-party grocery delivery service that is not a third-party food delivery service or a third-party courier service must only make payments to its grocery delivery workers for their trip time in a pay period that meet the individual requirement of subparagraph 1 and is not required to make payments that meet the aggregate requirement of subparagraph 2. For pay periods that begin on or after July 1, 2026, all third-party grocery delivery services must make payments to their grocery delivery workers for their trip time and on-call time in a pay period that meet the individual and aggregate requirements of subparagraphs 1 and 2 of this subdivision.
(1)Individual requirement. A third-party food delivery service, third-party courier service, or third-party grocery delivery service must pay to a food delivery worker or grocery delivery worker who engages in trip time in a pay period no less than the sum of such food delivery worker's or grocery delivery worker's trip time in that pay period multiplied by the following minimum pay rates: (i) $17.96 per hour, for pay periods that start on or after the effective date of this section; (ii) $18.96 per hour, adjusted for inflation as set forth in subdivision (g) of this section, for pay periods that start on or after April 1, 2024; and (iii) $19.96 per hour, adjusted for inflation annually as set forth in subdivisions (h) and (i) of this section, for pay periods that start on or after April 1, 2025.
(2)Aggregate requirement. A third-party food delivery service, third-party courier service, or third-party grocery delivery service must pay, in aggregate, to the food delivery workers or grocery delivery workers who engage in trip time or on-call time in a pay period no less than the sum of all such food delivery workers' or grocery delivery workers' trip time and on-call time in that pay period multiplied by the following minimum pay rates: (i) $17.96 per hour, for pay periods that start on or after the effective date of this section; (ii) $18.96 per hour, adjusted for inflation as set forth in subdivision (g) of this section, for pay periods that start on or after April 1, 2024; and (iii) $19.96 per hour, adjusted for inflation annually as set forth in subdivisions (h) and (i) of this section, for pay periods that start on or after April 1, 2025.
(c)Alternative method. Notwithstanding the requirements of subdivision (b) of this section, an eligible third-party food delivery service, third-party courier service, or third-party grocery delivery service may use the alternative method specified in this subdivision to determine the minimum payments it must make to food delivery workers or grocery delivery workers for their trip time and on-call time in a pay period.
(d)Bases of pay. A third-party food delivery service, third-party courier service, or third-party grocery delivery service may fulfill its obligation under subdivision (b) or subdivision (c) of this section using any basis of pay it chooses, including paying an hourly rate, a per-trip rate or other piece rate, a bonus or other lump-sum payment, or any other basis. Example: In a pay period that begins on February 2, 2026 5,000 food delivery workers or grocery delivery workers, in aggregate, engage in 55,000 hours of trip time and 45,000 hours of on-call time for a delivery service that is a third-party food delivery service, third-party courier service, or third-party grocery delivery service. Worker A, individually, engages in 30 hours of trip time and 5 hours of on-call time. At that time, the minimum pay rate is $ 21.44. The alternative minimum pay rate is $ 21.44 divided by 0.60. Standard Method: The delivery service meets the requirements of both subdivision (b)(1) and subdivision (b)(2) of this section if it pays its food delivery workers or grocery delivery workers as follows: 1. Each food delivery worker or grocery delivery worker is paid at least an amount equal to their trip time multiplied by $ 21.44. For instance, worker A receives at least $ 643.20, which is $ 21.44 multiplied by 30 hours; and 2. The total the delivery service pays for the pay period meets or exceeds the aggregate amount of trip time and on-call time (100,000 hours) multiplied by $ 21.44, which equals $ 2,144,000. Worker A's payment of at least $ 643.20 for trip time is credited towards the aggregate requirement and Worker A may, or may not, receive an additional payment. Alternative Method: The delivery service has a utilization rate of 0.55, which is its trip time (55,000) divided by the sum of its trip time and on-call time (100,000). Since 0.55 is greater than 0.53, the delivery service is eligible under subdivision (c)(1) to use the alternative method to determine the minimum payments it must make to its food delivery workers or grocery delivery workers for the pay period. If the delivery service uses the alternative method, it meets the requirements of subdivision (c) if each food delivery worker or grocery delivery worker is paid at least an amount equal to their trip time multiplied by $ 21.44 divided by .60. For instance, worker A receives $ 1072.00, which is $ 21.44 divided by .60 multiplied by 30 hours.
(e)No offset for gratuities. A third-party food delivery service, third-party courier service, or third-party grocery delivery service may not use gratuities paid to a food delivery worker or grocery delivery worker to offset such third-party food delivery service, third-party courier service, or third-party grocery delivery service's obligation to pay the food delivery worker or grocery delivery worker the minimum pay required by this section.
(f)No offset for trips outside of New York City. A third-party food delivery service, third-party courier service, or third-party grocery delivery service may not use amounts paid to a food delivery worker or grocery delivery worker for trips with a pickup and drop-off location outside of New York City to offset such third-party food delivery service, third-party courier service, or third-party grocery delivery service's obligation to pay to the food delivery worker or grocery delivery worker the minimum pay required by this section.
(g)2024 inflation adjustment. The Department shall perform the inflation adjustment required by subdivisions (b)(1)(ii) and (b)(2)(ii) of this section by multiplying $18.96 by the percent change in the All Items Consumer Price Index for Urban Wage Earners and Clerical Workers for the NY-NJ-PA metro area between December 2022 and December 2023 and rounding to the nearest cent, provided that if the percentage change is zero or negative, the adjustment shall be zero. The Department shall post the Consumer Price Index adjusted minimum pay rate on its website on or before the first day of February 2024.
(h)2025 inflation adjustment. For pay periods beginning on or after April 1, 2025 and before April 1, 2026, the Department shall perform the inflation adjustment required by subdivisions (b)(1)(iii) and (b)(2)(iii) of this section by multiplying $19.96 by the percent change in the All Items Consumer Price Index for Urban Wage Earners and Clerical Workers for the NY-NJ-PA metro area between December 2022 and December 2024 and rounding to the nearest cent, provided that if the percentage change is zero or negative, the adjustment shall be zero. The Department shall post the Consumer Price Index adjusted minimum pay rate on its website on or before the first day of February 2025.
(i)Inflation adjustments beginning in 2026. Beginning with the minimum pay rate for pay periods that start on or after April 1, 2026, and continuing each calendar year thereafter, the Department shall post the inflation-adjusted minimum pay rate required by subdivisions (b)(1)(iii) and (b)(2)(iii) of this section on or before the first day of February of the calendar year in which the rate will take effect. Such inflation adjustments will be performed by multiplying the minimum pay rate in effect prior to adjustment by the most recent December to December percent change in the All Items Consumer Price Index for Urban Wage Earners and Clerical Workers for the NY-NJ-PA metro area and rounding to the nearest cent, provided that if the percentage change is zero or negative, the adjustment shall be zero. (Added City Record 1/19/2022, eff. 2/18/2022; amended City Record 6/12/2023, eff. 7/12/2023; amended City Record 12/26/2025, eff. 1/25/2026)
