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Testimony from the New York City Department of Health and Mental Hygiene
New York City Department of Consumer and Worker Protection
App-Based Food Delivery Worker Public Hearing | June 15, 2022
The New York City Department of Health and Mental Hygiene (DOHMH) is pleased to submit testimony
in response to the New York City Department of Consumer and Worker Protection’s (DCWP) public
hearing on working conditions and minimum pay standards for app-based food delivery workers.
As the City’s public health department, we are strongly supportive of enacted legislation that improves
the health and wellbeing of over 65,000 essential workers in New York City. 1 Despite being deemed
essential throughout the pandemic, app-based food delivery workers have, until recently, remained
largely unprotected as independent contractors in a low-wage sector of the NYC economy. The scope of
these challenges is highlighted in a 2021 report by Los Deliveristas/Worker’s Justice Project and Cornell
ILR’s Worker Institute (WJP-Cornell) which reveals long-standing issues around payment, workplace
health and safety, and basic labor protections.
The latest package of laws addresses many of these concerns, among them, lack of minimum pay
standards which contributes measurable gaps in health care access, utilization, and outcomes among
underserved populations.
In New York City, app-based food delivery workers are disproportionately male, young, and from
immigrant communities. A significant majority of workers identify as Latino/a, of which most originate
from Mexico or Guatemala.1 Many are undocumented.
Immigrants in NYC and throughout the United States report worse health outcomes, lower health care
utilization rates, and more limited access to care than U.S.-born populations. 2,3 These indicators can be
attributed, in part, to a lack of insurance. In NYC, 12% of immigrants are uninsured (higher than the city-
wide average), 46% of uninsured immigrants are undocumented, 4 and about 47% of undocumented
immigrants are uninsured 5 – many of whom are ineligible for coverage altogether because the state and
federal governments continue to exclude hundreds of thousands of NYC residents from programs due to
their immigration status. Gaps in care have worsened in response to punitive immigration policies under
the previous federal administration 6,7 and throughout the COVID-19 pandemic, which has seen both
1
Figueroa M, Guallpa L, Wolf A, et al. “Essential but unprotected: app-based food couriers in New York City.” Los
Deliveristas/Worker’s Justice Project and Cornell LR’s Worker Institute. 12 Sep 2021.
2
Singh GK, et al. Immigrant health inequalities in the United States: use of eight major national data systems.
Scientific World J. 2013; Art ID 512313.
3
Lebrun LA, Dubay LC. Access to primary and preventive care among foreign-born adults in Canada and the United States. Health Serv
Research. 2010;45(6):1693-1719.
4
Mayor’s Office of Immigrant Affairs Annual Report. “State of Our Immigrant City.” 2020.
5
Virgin V, Warren R. Mapping key determinants of immigrants’ health in Brooklyn and Queens. Center for
Migration Studies. 23 Feb 2021.
6
Bernstein H, Gonzalez D, Karpman M, et al. “Amid Confusion over the Public Charge Rule, Immigrant Families
Continued Avoiding Public Benefits in 2019.” The Urban Institute. 18 May 2020.
7
Protecting Immigrant Families. “Harm of the Public Charge Regulations During the COVID-19 Pandemic.” March
2021.
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disproportionately high rates of COVID-19 morbidity and mortality, and disproportionately low rates of
testing, treatment, and vaccination throughout immigrant communities. 8
Immigrant workers have also been significantly impacted by job loss throughout the pandemic, 9 leading
many to turn to app-based food delivery work as their primary source of income. Most food couriers
work five or more days a week and identify app-based delivery work as their sole means of
employment.1 The vast majority of these workers are not considered employees of the app-based food
delivery companies they work for and are not eligible for employer-sponsored insurance (ESI). This
leaves them with no access to the primary source of health coverage for employed people under the
current U.S. insurance scheme.
The dangerous nature of food delivery accentuates the devastating impact of the lack of health coverage
protection for workers. In 2021, it was reported that nearly 50% of food couriers had been in an
accident or crash while completing a delivery, of which 75% said they had to pay for medical expenses
using personal funds due to lack of coverage.1 The pandemic has magnified the impact of the lack of
health and financial protection for this population. The termination of the COVID-19 Uninsured Program
due to lack of federal funds to support testing and treatment for uninsured people, expiring enhanced
subsidies for those enrolled in Qualified Health Plans (QHP), 10 and limited state relief for undocumented
workers ineligible for stimulus checks and other federal financial aid, have all exacerbated health
disparities among low-wage food delivery workers. Further, delivery workers bear a greater burden of
work-related exposure to COVID-19, are at increased risk for traffic-related injuries, and at times have
been targeted in acts of violence. 11
In addition to the Local Laws discussed in this hearing, the City has taken several steps to try to mitigate
some of these harms. Over the past two years, DOHMH has worked tirelessly with the City’s Taskforce
on Racial Inclusion and Equity (TRIE) and other City agencies to mitigate impacts of COVID-19 in
communities most affected by the pandemic and has seen remarkable success in increasing vaccination
rates. 12 Similarly, other city agencies have implemented policies to make roads and bike paths safer,
condemn racially motivated violence and discrimination, and strengthen protections against hate
crimes. However, insufficient pay remains delivery workers’ topmost concern1 and one of the largest
limiting factors in receiving timely, quality health care, given the concurrent lack of affordable coverage
and care options.
From a health care affordability and accessibility perspective, providing app-based workers with
employer-sponsored insurance would have the greatest impact on health care access, utilization, and
outcomes. However, since most, if not all, food delivery apps employ couriers as independent
contractors – and greater still, since many couriers are ineligible for coverage due to immigration status
– setting minimum pay standards is critical to addressing such disparities. Higher pay can both reduce
8
“Fact Sheet: COVID-19 Health and Economic Impacts on Immigrant Communities.” NYC Mayor’s Office of
Immigrant Affairs in partnership with NYC Office for Economic Opportunity and NYC Department of Consumer and
Worker Protection. July 2020.
9
“Under Threat & Left Out: NYC’s Immigrants and the Coronavirus Crisis.” Center for an Urban Future. June 2020.
10
Cox C, Pollitz K, Ramirez G. “How Marketplace Costs and Premiums Will Change if Rescue Plan Subsidies Expire.”
Kaiser Family Foundation. 24 September 2021.
11
Ojeda RH. “Rideshare, Delivery Workers Demand Protections from App Companies.” Documented NY. 20 May
2022.
12
Testimony of Torian Easterling, M.D. before the New York City Council Committee on Health and Subcommittee
on COVID-19 Recovery on COVID-19: Looking Ahead. 18 April 2022.
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the financial burden for workers paying premiums on affordable coverage as well as undocumented
workers paying costly out-of-pocket medical expenses. Further, employer-sponsored health insurance is
a core part of compensation in our employer-based health coverage system. Whether employers offer
health insurance as part of compensation should be considered when setting pay standards.
We also recommend that DCWP consider existing thresholds for affordable coverage when setting
minimum pay standards. For example, under 2022 Federal Poverty Guidelines, single adults earning up
to $18,754 a year (138% FPL) may be eligible for Medicaid coverage in New York, 13 and single adults
earning up to $27,180 (200% FPL) are eligible for coverage under the state's Essential Plan. 14 For
individuals enrolled in a Qualified Health Plan (QHP), single adults earning up to $54,360 (400% FPL) may
be eligible for tax credits to help cover the cost of premiums; existing subsidies received a bump and
income eligibility caps were suspended for all QHP enrollees under the American Rescue Plan, but these
enhanced protections expire at the end of 2022. 15 Based on these thresholds and assuming 40-hour
work weeks, app-based delivery workers making less than $9.02/hour would qualify for Medicaid,
$13.06/hour for the Essential Plan, and $26.13/hour for subsidized QHPs (assuming expiration of
enhanced subsidies after 2022). It bears reiterating that most undocumented workers do not qualify for
any of these programs.
The New York City Department of Health and Mental Hygiene is thankful for the opportunity to weigh in
on the implementation of Local Laws 115 and 116 and looks forward to continuing our partnership with
the Department of Consumer and Worker Protection as we promote and protect the health and
wellbeing of all New Yorkers.
13
American Council on Aging. “Federal Poverty Levels/Guidelines & How They Determine Medicaid Eligibility.” 18
January 2022.
14
New York State of Health. The Essential Plan Fact Sheet. 2022.
15
Healthcare.gov. "Glossary: Federal Poverty Level.” 2022.
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NYC DEPARTMENT OF TRANSPORTATION TESTIMONY
FOR THE DEPARTMENT OF CONSUMER AND WORKER PROTECTION’S
DELIVERY WORKER PUBLIC HEARING
June 15, 2022
Good afternoon Commissioner Mayuga. I am Benjamin Smith, Director of Legislative Affairs at
New York City DOT. I am happy to be here today to testify on behalf of Commissioner
Rodriguez about delivery worker pay and conditions, as it relates to DOT’s mission of street
safety for all New Yorkers.
Delivery cyclists are under significant pressure to travel far and fast throughout the city to
deliver our food. In this line of work, working conditions, economic pressures, and safety are
closely connected. Thus, DOT supports efforts to improve working conditions and keep delivery
cyclists and all New Yorkers safe—including setting minimum pay standards for these essential
workers. Such standards should be structured to support safe and legal equipment and practices
rather than potentially cheaper and substandard equipment and rushed or unsafe operation.
In 2020, the New York State legislature made amendments to the vehicle and traffic law (VTL)
to create three classes of electric-assist bicycles, as you can see in the chart attached to this
testimony. Despite having these legal electric-assisted biking options for delivery workers, DOT
has seen an increase in heavier, more powerful motorized scooters on New York City streets,
vehicles we refer to as illegal mopeds. It is illegal to either sell or operate them on public streets
in New York City. However, these illegal mopeds are frequently marketed as “e-bikes” by shops
within New York City that sell them in plain sight, and workers may buy them fully believing
they are legitimate. These devices, lacking operable pedals, are less akin to bicycles and more
similar to motorized vehicles. But, these vehicles lack a vehicle identification number (VIN) and
are not registerable with the New York State Department of Motor Vehicles (DMV).
In contrast, legal mopeds or “limited use motorcycles” have license plates, are registered with
DMV, and require a driver’s license to operate. These are subject to all the safety regulations
appropriate for motorized vehicles that come along with licensing and registration, such as the
requirement to maintain liability insurance, the ability to have your license or registration
suspended for traffic infractions, and being subject to DOT’s automated speeding and red light
enforcement.
Beginning in 2021, working together with the NYPD, DOT began separately tracking fatalities
involving motorized devices that cannot be appropriately categorized as either bicycles or
motorcycles. We refer to this category as “other motorized,” and in addition to illegal mopeds,
they include standing e-scooters, which are legal to operate if they weigh less than 100 pounds.
In 2021, 11 riders, several of them delivery workers, were killed using illegal mopeds, and one
pedestrian was struck and killed by a rider.
Third-party delivery apps generally have a business model that centers on independent
contractors who make deliveries. The independent contractors supply their own bikes or other
vehicles at their own expense, with no way for companies to verify the legality or safety of such
equipment, and such operators are under great pressure to make deliveries as fast as possible.
Making a living working for third-party apps in many cases is dependent on participating in a
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black market of illegal, unregistered, and possibly substandard devices or vehicles and the use of
poorer quality batteries charged in private homes. This model creates the wrong incentives when
it comes to the safety of the operators and other street users. DOT strongly supports a minimum
pay standard that relieves some of this pressure.
The predominant business model of these companies also ignores local laws and rules. Third-
party delivery apps are required to comply with the commercial cyclist law codified in Sections
10-157 and 10-157.1 of the New York City Administrative Code and Section 4-12(p)(4) of Title
34 of the Rules of the City of New York which apply to any business that use a bicycle or any
human powered wheeled device or any motor-assisted device not capable of being registered
with the DMV to deliver food, goods, or parcels. Pursuant to amendments made by the City
Council in 2017, these requirements apply even when the delivery workers are independent
contractors and not direct employees.
Under the law, third-party delivery apps must:
1. Register with DOT;
2. Ensure that delivery contractors do not use illegal mopeds in the course of their work as
such vehicles are illegal on the streets of New York City, and it is a violation for any
business to use or permit one to be used on their behalf for commercial purposes;
3. Assign each bicycle operator a three digit identification (ID) number, which DOT can
expand to four or more digits if needed under the law;
4. Issue bicycle operators’ ID cards containing the name, ID number, and photo of the
bicycle operator as well as the name, address, and phone number of the company. Bicycle
operators must carry those ID cards at all times when making deliveries or operating a
bicycle on behalf of a company;
5. Provide a protective helmet and retro-reflective outerwear displaying the company’s
name and ID number to any bicycle operator;
6. Ensure that each bicycle has a white headlight and red taillight, a bell or other device
capable of giving an audible signal for at least 100 feet, brakes, and reflective tires or a
reflector mounted on the spokes of each wheel; this equipment must be provided free of
charge, and under no circumstances should bicycle operators be required to spend their
own money on helmets or other safety equipment;
7. Post the official commercial cyclist safety poster at their business site, or if they have
only a post office address within the City, provide written notice of such information to
each operator;
8. Maintain business records showing that every operator has completed the commercial
cyclist safety course available on the DOT website prior to making deliveries, and make
such records available to DOT or the NYPD upon request.
In December 2021, DOT’s Commissioner sent a letter to over a dozen app-based deliver
companies1 reminding them of the requirement to comply with the above mentioned provisions,
as well as of their outstanding fine amounts for violations of the commercial cyclist law.
1The companies to which DOT sent letters were GrubHub, DoorDash, UberEATS, Relay, Postmates, Hungry
Panda, Delivery.com, Instacart, Favor, MealMe, Waitr, Drizly, EatStreet, Deliveroo, Shipt, BeyondMenu, Amazon
Fresh, and goPuff
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Thank you again for the opportunity to submit this public testimony. DOT looks forward to
continuing to work with our agency partners to enforce existing rules, implement and enforce
new laws in this area enacted by the City Council, and explore further possible regulations.
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June 16, 2022
Testimony of AJ Yusuf, Neighborhood Organizer, Outreach
NYC Mayor’s Office of Immigrant Affairs
Before a Public Hearing on App-Based Food Delivery Workers
Hosted by the New York City Mayor’s Office of Consumer and Worker Protection
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Thank you to Commissioner Mayuga and the team at the NYC Department of
Consumer and Worker Protection (DCWP) for hosting this very important public hearing
on the working conditions of app-based food delivery workers.
My name is AJ Yusuf, and I am a Neighborhood Organizer, part of the Outreach Team
with the Mayor’s Office of Immigrant Affairs. Within our work, we have seen firsthand
the hardships and challenges that delivery workers and particularly app-based food
delivery workers face across this city, both prior to the pandemic and more so as they
were at the frontlines of COVID-19.
Through our touchpoint with delivery workers, we know that many delivery workers do
not have social security cards. Because of this, many of them apply for and use ITIN
numbers to work and file for taxes. Given their status and the massive shutdowns
across all sectors during the pandemic, many delivery workers lost their jobs or saw
diminished income and had limited avenues for seeking much needed supports –
including federal government financial supports accessible only by US Citizens. This
reality made their economic situation that more precarious. While some were able to
access privately funded economic assistance and apply to the New York State’s
Excluded Worker’s Fund, the need far exceeded the funds allocated and the funds were
exhausted in less than two months.
I want to share the story of Borkot Ullah, a member of an organization called Desis
Rising & Moving also known as DRUM. He was a young delivery worker in Queens. He
echoed many of the same concerns noted here in this hearing. Borkot was struck and
killed by a driver who ran the light while being chased by the NYPD. Borkot had fought
and applied for the Excluded Worker’s Fund, which he did not receive due to his tragic
death. Following his death, his family became destitute as they relied largely on his
income for sustenance. The life of a delivery worker is fraught with danger, and they
deserve dignity and respect, but above all receive fair pay for their work.
Expenses of Being a Delivery Worker
Delivery workers have a high upfront cost for doing this job. To become a delivery
worker, they must personally invest in expensive and sturdy bicycles or e-bikes, bicycle
maintenance, appropriate safety gear (elbow pads, helmets, reflective vests), weather
protection gear (rain jackets, bicycle mittens) as well as monthly unlimited MTA cards,
before they can even begin to serve as delivery workers. According to members of
DRUM, these costs can range from about $2,700-$2,800.
Any discussions around minimum wage should factor in cost of equipment and other
materials needed to do the job safely as well as the impacts of stolen equipment.
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Earnings, Time, Scheduling and Pay of Delivery Workers
As the growth and use of food deliver applications rose, especially in 2020, the
availability of jobs through these apps became more competitive. By the end of 2020,
DoorDash controlled 45% of the food delivery market and earned nearly $3 billion in
revenue, with UberEats at 22%, Grubhub at 18% and Postmates at 8%.1
Establishing a base salary and minimum wage for delivery workers is long overdue.
Delivery workers often work between 8 and 16 hours shifts, and if the number of delivery
orders are low on any given day, they can make as little as $40 a day. Often delivery
workers would turn on their app for hours with no delivery requests resulting in wasted
hours that they could be earning wages elsewhere. A minimum wage would ensure an
income for what is a very important or essential service in a city like New York.
Anecdotally, we have also heard from delivery workers that these delivery apps often
keep the tips or keep a percentage of the tips they have earned. A minimum wage of $15
an hour is not sustainable Any minimum wage for delivery workers must be
commensurate with NYC’s cost of living, initial personal investments in the equipment
needed to do the job and factor in other modes of transportations to make deliveries on
time. If the minimum wage is too low, this will negatively impact their quality of life and
ability to provide for themselves or their families.
Safety of Delivery Workers
Many delivery workers face unsafe working conditions every day – they are the targets
of bicycle or e-bike thefts, the victims of assaults or attacks resulting in death, or suffer
from workplace accidents without any health or sick leave coverage. Delivery workers
also endure harsh weather conditions, deliveries are made rain or shine; as well as
harsh or rude behavior from customers who do not value their work and sacrifice.
Health of Delivery Workers
Due to the unstable and precarious nature of delivery work, workers must pay for health
insurance out of pocket. None of the delivery apps nor restaurants who employ them,
provide healthcare of any kind. Many delivery workers use their ITIN numbers to file
taxes and if their yearly income rises above $50,000, then their insurance premiums
through Get Covered NYC can increase exponentially causing them to either lose
healthcare coverage or forgo it altogether.
The life of a delivery worker is exhaustive and uncertain, often with no income stability
or employment security. Yet, NYC’s delivery workers kept NYC running throughout the
pandemic.
1
https://hoteltechreport.com/news/online-ordering-food-delivery-statistics
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The Mayor’s Office of Immigrant Affairs strongly advocates for a sustainable minimum
wage for delivery workers that allows them to become even more integrated into the
city’s economic growth and further supports their contributions in recovering from
COVID-19 and fully opening NYC.
Thank you.
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TESTIMONY OF NEW YORK CITY COMPTROLLER BRAD LANDER
Department of Consumer and Worker Protection’s Delivery Worker Public Hearing
Wednesday, June 15, 2022
Thank you for holding this Department of Consumer and Worker Protection (DCWP) hearing on
delivery worker pay and working conditions, including time and scheduling, expenses, health
and safety issues, and challenges workers face and for the opportunity to comment. New York
City must be prepared for the economic road bumps that lie ahead. In order to do so, the City
must invest in an economic recovery that will lift all boats and support workers that keep our city
afloat, especially the app-based delivery workers who have risked their lives through the
pandemic to provide food and other goods to New Yorkers who were unable or unwilling to
leave their homes.
Last year as a Council Member, I was the prime sponsor of Local Law 115 of 2021, which
established minimum per trip payments to third-party food delivery service and third-party
courier service workers. I successfully advocated alongside Los Deliveristas Unidos and
Councilmembers Carlina Rivera, Justin Brannan and Carlos Menchaca for landmark protections
for deliveristas. Together, we passed a six-bill package that, among other things, mandates
minimum payments per trips, grants workers access to restaurant bathrooms, requires companies
to be transparency about tips and total pay, and limits how far they can be asked to ride.
Now, DCWP must follow through by establishing a Living Wage Standard for app-based food
delivery workers. This standard is critical to ensuring these essential workers can pay rent, put
food on the table, and provide for their families.
Worker Justice Project estimates that there are about 65,000 delivery workers in New York City.
This workforce skews young: 59 percent of those surveyed by Worker Justice Project and
Cornell were under 30 years of age. These workers, who predominantly live in the Bronx,
Queens, and Brooklyn, are immigrant workers hailing from in Latin America (namely Mexico
and Guatemala), South Asia (Bangladesh), West Africa and China. Many deliveristas work to
support their families: more than 40 percent of respondents support a child or family member. Of
that 40 percent, 37 percent support two children and 28 percent support three or more children.
CEOs of delivery app companies like DoorDash and UberEATS earn millions of dollars
annually, while delivery workers on the ground make poverty wages. Worker Justice Project and
Cornell report that after expenses, workers earn $2,345 per month including tips. They estimate
net hourly pay to be about pay per hour is about $12.21 -- below New York State’s legal
minimum wage threshold of $15 per hour. All the while, these companies have seen their
revenues grow more than 200 percent in the past five years.
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Time & Scheduling
Delivery workers’ pay and working hours are shaped by volatile factors outside of their control.
Most apps, except for Relay and Chowbus, do not pay workers a fixed hourly rate: instead, they
offer a “base pay” that is dependent on mile, minute, and order. The average base pay ranges
between $2.00 and $5.00 per delivery without tips. Tips, which represent 44 percent of workers’
earnings, are not income and are completely up to customers’ discretion. Workers are given an
estimate of the tips they will receive because apps allow customers to change their tip allocation
up to an hour after their food is delivered.
Workers in this industry rely on deliveries as their primary source of income: most delivery
workers surveyed by Worker Justice Project and Cornell named app-based work as their primary
and only job. 81 percent of respondents work more than 5 days a week and 64 percent reported
working 6 to 7 days a week. Deliveristas work across multiple food delivery apps because
working for just one would not provide sufficient income to sustain oneself or a family.
The apps only compensate workers for time spent on a delivery order, not for time spent waiting
for orders. This means deliveristas work until they complete a sufficient number of deliveries to
reach their desired pay, no matter how many hours it takes. Food delivery apps can assign
delivery workers to any restaurant, no matter its proximity to the workers’ location. As a result,
in addition to workers waiting for the app to assign their next order, they must travel substantial
distances to pick up the order. Workers reported that half of all deliveries take more than 30
minutes to complete. The Department of Consumer and Worker Protection must establish a
living wage for deliveristas, and the pay standard must pay workers for active and waiting time.
Expenses
Under city law, restaurant must cover their delivery workers’ expenses including bikes and
phones. However, app-based delivery workers must make upfront investments to work in this
industry. E-bikes can cost between $1,000 and $2,200, and lithium batteries cost about $600 each
(workers typically buy two). Workers spend an additional $300-350 per month on cell phones,
data plans, rain jackets, and bike maintenance. By establishing a living wage standard for
delivery workers, the City can facilitate a more level playing field for restaurants and food
delivery apps.
Health & Safety
Delivery workers have suffered assaults and abuse on the job: in 2021, fourteen deliveristas lost
their lives delivering food. 54 percent of workers surveyed by Worker Justice Project and
Cornell reported bike theft. 30 percent of this subset of workers reported physical assault.
New York City’s streets, which are functionally deliveristas’ workplace, pose a health and safety
risk. According to Transportation Alternatives, more than 70 pedestrians and bicyclists have
been killed in 2022 to date. Crashes killed 273 New Yorkers in 2021, making it the deadliest
year in our city’s streets since 2013. According to Worker Justice Project and Cornell, 49 percent
of respondents suffered an accident or crash on the job. Investing in street safety will provide
safer conditions for delivery workers to do their jobs.
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Extreme weather events, including floods and snowstorms, are another health and safety risk for
deliveristas. When tore through New York City, workers delivered food through Hurricane Ida
resulting in costly damages to their e-bikes. Apps provide surge pricing, a preserve incentive,
during these events to temporarily boost pay for workers that weather the storm.
New York City’s Opportunity
New York is one of the major markets for app-based food delivery in the United States. Big
companies are swallowing up smaller competitors: last year, DoorDash, GrubHub, and UberEats
each represented roughly a third of the market in New York City. Right now, delivery apps focus
on groceries and restaurant food. However, this industry is expanding to support health
companies (including pharmacies) and department stores. The Department of Consumer and
Worker Protection has an opportunity to lead the nation by establishing a minimum wage
standard for this growing industry that adequately compensates delivery workers for their pivotal
contributions to our City and their immense labor and ensure they can take part in our economic
recovery.
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Good morning. I am Council Member Shahana Hanif. Thank you to the Department of
Consumer and Worker Protection for holding this hearing and for granting me the
oppo1tunity to speak.
I am here today to express my suppo1i for establishing a living and minimum wage for
app delive1y workers in New York City. For too long, the livelihoods of our City's
delive1y workers have depended on the generosity of customer tips. This is not a reliable
source of income. When a delive1y worker is offered an order, the amount they are told
they will be paid in tips is often listed as an "estimate." Most apps give customers up to
an hour after their food is delivered to change the amount of tip they originally listed. If a
customer is dissatisfied because an order was delayed, they may decide to remove the tip.
Additionally, tipping for food orders has drastically declined toward pre-pandeinic levels
as the economy has re-opened 1.
This is a highly unstable fo1m of income for the 65,000+ delive1y workers across the city,
with over 40% of whom are suppo1iing family members2. Deliveristas are predominantly
young people, under 30 years old, people of color, and immigrants, and as the Chair of
the Committee on Iminigration, this issue is of dire importance to me. Despite being
deemed essential during the pandeinic, the City's deliveristas remain unprotected in the
largely unregulated platfonn economy. A deliverista living wage standard will establish
national work standards in the app delive1y industiy, promote inclusive sector growth,
1
https://www.nytimes.com/2021/06/04/upshot/tipping-pandemic-new-york html
2
https://losdeliveristasunidos.org/ldu-report
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and build a future-focused economy with a local economic impact in every corner of New
York City.
I want to thank the Workers Justice Project, Los Deliveristas Unidos, and Desis Rising
Up and Moving (DRUM) who are continually fighting to bring awareness and basic
protections for our City’s delivery workers. Through their organizing, allyship, and
lobbying, they were able to introduce the deliverista bill package that guarantees the
first-of-its-kind labor rights for New York City app delivery workers. However, the fight
for fair and just work conditions is far from over and we must institute a fair minimum
pay for our delivery workers.
I look forward to continuing working with our City’s deliveristas and community-based
organizations to make New York City a safer and fairer place to work and a minimum
wage is the next step in doing so. Thank you for your time and consideration.
2
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Los Deliveristas Unidos/ WJP
Date: June 15th, 2022
To: NYC Department of Consumer and Worker Protections (DCWP)
From: Hildalyn Colon Hernandez, Director of Policy & Strategic Partnerships for Los
Deliveristas Unidos/WJP
Re: Minimum Pay Standard Study for App-Based Food Delivery Workers
______________________________________________________________________
Dear DCWP Comissioner Vilda Vera Mayuda:
Los Deliveristas Unidos (LDU) is the largest worker-led movement founded by
Deliveristas, app delivery workers, that work for multiple delivery platforms in NYC.
Since 2020, LDU is fighting to build, establish new labor rights and standards that better
the conditions of app delivery workers in NYC and beyond. LDU is a new organizing
effort powered by the Workers Justice Project (WJP).
LDU's long journey to justice started as Deliveristas band together throughout NYC
streets as they serve and feed New Yorkers and help to sustain small business during
the COVID -19 pandemic. On April 21st, 2021 - Los Deliveristas Unidos (LDU)
organized a historic march of more than 2,000 app delivery workers biked from Times
Square to Foley Square to demand better wages and protections from the tech giants
that run delivery app platforms.
In September 2021, Los Deliveristas partnered City Council Members Justin Brannan &
Carlina Rivera and former city council members Brad Lander (now NYC City
Comptroller), Carlos Menchaca to introduce the LDU bill package - NYC Delivered
Justice to Los Deliveristas. LDU obtained a major labor victory in their journey to seek
justice, when the NYC Council overwhelmingly voted to approve this landmark bill
package. These first-of-its-kind labor rights for NYC's app delivery workers, such as
minimum pay, Deliveristas will be able to establish the distance they want to travel,
bathroom access, and other provisions.
Deliveristas started the year 2022 with labor rights, 1st Phase Deliveristas Laws require
that app delivery platforms must be licensed by DCWP to operate in NYC; apps must
notify Deliveristas how much the customer tips for each delivery and their total pay and
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Los Deliveristas Unidos/ WJP
tips for the previous day. In addition, Deliveristas have better access to restaurant
bathrooms when they pick up an order.
And the journey to justice is far from over, on 2nd Phase of the Deliveristas Laws
require that app mus provide an insulated bag to workers; workers must be pay once a
week and prohibits app charging payment fee to workers, and it must provide the
Deliveristas all the information before he or she accepts a delivery. But more
importantly, now Deliveristas have the power to limit how far they will travel from
restaurants and refuse to use bridges or tunnels.
The NYC Department of Consumer Affairs & Workers Protection (DCWP) implements
and enforces the new Deliveristas laws and regulates apps in NYC. The 3rd Phase of
the Deliveristas Laws will culminate with establishment of the minimum pay for app
delivery workers in the industry on Jan 1, 2023.
Before the implementation of the minimum standard, DCWP will host a virtual public
hearing this Wednesday, June 15th, 2022 from 1pm to 4pm. The NYC Department of
Consumer and Worker Protection (DCWP) is inviting the public, workers, elected
officials, and the community to testify about delivery worker pay and working conditions,
including time and scheduling, expenses, health and safety issues, and challenges
workers face.
Main Points
● Los Deliveristas Unidos (LDU)/Workers Justice Project is demanding that DCWP
establish a living wage for Deliveristas that allow them to sustain his or herself
and their family.
● Los Deliveristas Unidos & Workers Justice Project are demanding NYC to
establish a minimum pay standard for Deliveristas in NYC. A strong living wage
standard will be groundbreaking for underpaid essential workers, immigrant and
people of color, app delivery workers who otherwise are excluded from standard
labor rights.
● We urge the City’s Department of Consumer and Worker Protections to consider
the substantial labor costs borne by app delivery workers who are
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Los Deliveristas Unidos/ WJP
non-employees, the dangerous conditions of their work, the prevailing wage of
delivery services in the city, and the overall benefit to “rebuild, renew, reinvent” to
the city’s economy in increasing delivery worker pay.
● Deliveristas’ living wage cannot depend the generosity of some customers. App
must pay their fair share and pay Deliveristas a living wage for their essential
work.
● Deliveristas had and continue to work on the frontlines - as they feed New
Yorkers and sustained thousands of small busines during the COVID-19
pandemic. In addition, Deliveristas sustain New Yorkers during extreme weather
conditions caused by climate change and city emergencies, such as Hurricane
Ida and even during Sunset Park Shooting lockdown.
● Deliveristas are essential workers, as police officers, doctors, nurses, ride share
drivers and teachers - NYC & apps must paid and treat them as such.
● The explosion of apps delivery has been great for startups’ investors — however
Deliveristas who realize this hard job during extreme weather conditions - rain or
shine, snow storms, and even during Hurricane Ida - have been emerge in
poverty wages for past few years.
● The establishment of Deliverista Living Minimum standard go hand and hand
with Mayor Adams’ “Rebuild, Renew, Reinvent: A Blueprint for New York City
Preview
FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 Testimony from the New York City Department of Health and Mental Hygiene New York City Department of Consumer and Worker Protection App-Based Food Delivery Worker Public Hearing | June 15, 2022 The New York City Department of Health and Mental Hygiene (DOHMH) is pleased to submit testimony in response to the New York City Department of Consumer and Worker Protection’s (DCWP) public hearing on working conditions and minimum pay standards for app-based food delivery workers. As the City’s public health department, we are strongly supportive of enacted legislation that improves the health and wellbeing of over 65,000 essential workers in New York City. 1 Despite being deemed essential throughout the pandemic, app-based food delivery workers have, until recently, remained largely unprotected as independent contractors in a low-wage sector of the NYC economy. The scope of these challenges is highlighted in a 2021 report by Los Deliveristas/Worker’s Justice Project and Cornell ILR’s Worker Institute (WJP-Cornell) which reveals long-standing issues around payment, workplace health and safety, and basic labor protections. The latest package of laws addresses many of these concerns, among them, lack of minimum pay standards which contributes measurable gaps in health care access, utilization, and outcomes among underserved populations. In New York City, app-based food delivery workers are disproportionately male, young, and from immigrant communities. A significant majority of workers identify as Latino/a, of which most originate from Mexico or Guatemala.1 Many are undocumented. Immigrants in NYC and throughout the United States report worse health outcomes, lower health care utilization rates, and more limited access to care than U.S.-born populations. 2,3 These indicators can be attributed, in part, to a lack of insurance. In NYC, 12% of immigrants are uninsured (higher than the city- wide average), 46% of uninsured immigrants are undocumented, 4 and about 47% of undocumented immigrants are uninsured 5 – many of whom are ineligible for coverage altogether because the state and federal governments continue to exclude hundreds of thousands of NYC residents from programs due to their immigration status. Gaps in care have worsened in response to punitive immigration policies under the previous federal administration 6,7 and throughout the COVID-19 pandemic, which has seen both 1 Figueroa M, Guallpa L, Wolf A, et al. “Essential but unprotected: app-based food couriers in New York City.” Los Deliveristas/Worker’s Justice Project and Cornell LR’s Worker Institute. 12 Sep 2021. 2 Singh GK, et al. Immigrant health inequalities in the United States: use of eight major national data systems. Scientific World J. 2013; Art ID 512313. 3 Lebrun LA, Dubay LC. Access to primary and preventive care among foreign-born adults in Canada and the United States. Health Serv Research. 2010;45(6):1693-1719. 4 Mayor’s Office of Immigrant Affairs Annual Report. “State of Our Immigrant City.” 2020. 5 Virgin V, Warren R. Mapping key determinants of immigrants’ health in Brooklyn and Queens. Center for Migration Studies. 23 Feb 2021. 6 Bernstein H, Gonzalez D, Karpman M, et al. “Amid Confusion over the Public Charge Rule, Immigrant Families Continued Avoiding Public Benefits in 2019.” The Urban Institute. 18 May 2020. 7 Protecting Immigrant Families. “Harm of the Public Charge Regulations During the COVID-19 Pandemic.” March 2021. 1 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 disproportionately high rates of COVID-19 morbidity and mortality, and disproportionately low rates of testing, treatment, and vaccination throughout immigrant communities. 8 Immigrant workers have also been significantly impacted by job loss throughout the pandemic, 9 leading many to turn to app-based food delivery work as their primary source of income. Most food couriers work five or more days a week and identify app-based delivery work as their sole means of employment.1 The vast majority of these workers are not considered employees of the app-based food delivery companies they work for and are not eligible for employer-sponsored insurance (ESI). This leaves them with no access to the primary source of health coverage for employed people under the current U.S. insurance scheme. The dangerous nature of food delivery accentuates the devastating impact of the lack of health coverage protection for workers. In 2021, it was reported that nearly 50% of food couriers had been in an accident or crash while completing a delivery, of which 75% said they had to pay for medical expenses using personal funds due to lack of coverage.1 The pandemic has magnified the impact of the lack of health and financial protection for this population. The termination of the COVID-19 Uninsured Program due to lack of federal funds to support testing and treatment for uninsured people, expiring enhanced subsidies for those enrolled in Qualified Health Plans (QHP), 10 and limited state relief for undocumented workers ineligible for stimulus checks and other federal financial aid, have all exacerbated health disparities among low-wage food delivery workers. Further, delivery workers bear a greater burden of work-related exposure to COVID-19, are at increased risk for traffic-related injuries, and at times have been targeted in acts of violence. 11 In addition to the Local Laws discussed in this hearing, the City has taken several steps to try to mitigate some of these harms. Over the past two years, DOHMH has worked tirelessly with the City’s Taskforce on Racial Inclusion and Equity (TRIE) and other City agencies to mitigate impacts of COVID-19 in communities most affected by the pandemic and has seen remarkable success in increasing vaccination rates. 12 Similarly, other city agencies have implemented policies to make roads and bike paths safer, condemn racially motivated violence and discrimination, and strengthen protections against hate crimes. However, insufficient pay remains delivery workers’ topmost concern1 and one of the largest limiting factors in receiving timely, quality health care, given the concurrent lack of affordable coverage and care options. From a health care affordability and accessibility perspective, providing app-based workers with employer-sponsored insurance would have the greatest impact on health care access, utilization, and outcomes. However, since most, if not all, food delivery apps employ couriers as independent contractors – and greater still, since many couriers are ineligible for coverage due to immigration status – setting minimum pay standards is critical to addressing such disparities. Higher pay can both reduce 8 “Fact Sheet: COVID-19 Health and Economic Impacts on Immigrant Communities.” NYC Mayor’s Office of Immigrant Affairs in partnership with NYC Office for Economic Opportunity and NYC Department of Consumer and Worker Protection. July 2020. 9 “Under Threat & Left Out: NYC’s Immigrants and the Coronavirus Crisis.” Center for an Urban Future. June 2020. 10 Cox C, Pollitz K, Ramirez G. “How Marketplace Costs and Premiums Will Change if Rescue Plan Subsidies Expire.” Kaiser Family Foundation. 24 September 2021. 11 Ojeda RH. “Rideshare, Delivery Workers Demand Protections from App Companies.” Documented NY. 20 May 2022. 12 Testimony of Torian Easterling, M.D. before the New York City Council Committee on Health and Subcommittee on COVID-19 Recovery on COVID-19: Looking Ahead. 18 April 2022. 2 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 the financial burden for workers paying premiums on affordable coverage as well as undocumented workers paying costly out-of-pocket medical expenses. Further, employer-sponsored health insurance is a core part of compensation in our employer-based health coverage system. Whether employers offer health insurance as part of compensation should be considered when setting pay standards. We also recommend that DCWP consider existing thresholds for affordable coverage when setting minimum pay standards. For example, under 2022 Federal Poverty Guidelines, single adults earning up to $18,754 a year (138% FPL) may be eligible for Medicaid coverage in New York, 13 and single adults earning up to $27,180 (200% FPL) are eligible for coverage under the state's Essential Plan. 14 For individuals enrolled in a Qualified Health Plan (QHP), single adults earning up to $54,360 (400% FPL) may be eligible for tax credits to help cover the cost of premiums; existing subsidies received a bump and income eligibility caps were suspended for all QHP enrollees under the American Rescue Plan, but these enhanced protections expire at the end of 2022. 15 Based on these thresholds and assuming 40-hour work weeks, app-based delivery workers making less than $9.02/hour would qualify for Medicaid, $13.06/hour for the Essential Plan, and $26.13/hour for subsidized QHPs (assuming expiration of enhanced subsidies after 2022). It bears reiterating that most undocumented workers do not qualify for any of these programs. The New York City Department of Health and Mental Hygiene is thankful for the opportunity to weigh in on the implementation of Local Laws 115 and 116 and looks forward to continuing our partnership with the Department of Consumer and Worker Protection as we promote and protect the health and wellbeing of all New Yorkers. 13 American Council on Aging. “Federal Poverty Levels/Guidelines & How They Determine Medicaid Eligibility.” 18 January 2022. 14 New York State of Health. The Essential Plan Fact Sheet. 2022. 15 Healthcare.gov. "Glossary: Federal Poverty Level.” 2022. 3 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 NYC DEPARTMENT OF TRANSPORTATION TESTIMONY FOR THE DEPARTMENT OF CONSUMER AND WORKER PROTECTION’S DELIVERY WORKER PUBLIC HEARING June 15, 2022 Good afternoon Commissioner Mayuga. I am Benjamin Smith, Director of Legislative Affairs at New York City DOT. I am happy to be here today to testify on behalf of Commissioner Rodriguez about delivery worker pay and conditions, as it relates to DOT’s mission of street safety for all New Yorkers. Delivery cyclists are under significant pressure to travel far and fast throughout the city to deliver our food. In this line of work, working conditions, economic pressures, and safety are closely connected. Thus, DOT supports efforts to improve working conditions and keep delivery cyclists and all New Yorkers safe—including setting minimum pay standards for these essential workers. Such standards should be structured to support safe and legal equipment and practices rather than potentially cheaper and substandard equipment and rushed or unsafe operation. In 2020, the New York State legislature made amendments to the vehicle and traffic law (VTL) to create three classes of electric-assist bicycles, as you can see in the chart attached to this testimony. Despite having these legal electric-assisted biking options for delivery workers, DOT has seen an increase in heavier, more powerful motorized scooters on New York City streets, vehicles we refer to as illegal mopeds. It is illegal to either sell or operate them on public streets in New York City. However, these illegal mopeds are frequently marketed as “e-bikes” by shops within New York City that sell them in plain sight, and workers may buy them fully believing they are legitimate. These devices, lacking operable pedals, are less akin to bicycles and more similar to motorized vehicles. But, these vehicles lack a vehicle identification number (VIN) and are not registerable with the New York State Department of Motor Vehicles (DMV). In contrast, legal mopeds or “limited use motorcycles” have license plates, are registered with DMV, and require a driver’s license to operate. These are subject to all the safety regulations appropriate for motorized vehicles that come along with licensing and registration, such as the requirement to maintain liability insurance, the ability to have your license or registration suspended for traffic infractions, and being subject to DOT’s automated speeding and red light enforcement. Beginning in 2021, working together with the NYPD, DOT began separately tracking fatalities involving motorized devices that cannot be appropriately categorized as either bicycles or motorcycles. We refer to this category as “other motorized,” and in addition to illegal mopeds, they include standing e-scooters, which are legal to operate if they weigh less than 100 pounds. In 2021, 11 riders, several of them delivery workers, were killed using illegal mopeds, and one pedestrian was struck and killed by a rider. Third-party delivery apps generally have a business model that centers on independent contractors who make deliveries. The independent contractors supply their own bikes or other vehicles at their own expense, with no way for companies to verify the legality or safety of such equipment, and such operators are under great pressure to make deliveries as fast as possible. Making a living working for third-party apps in many cases is dependent on participating in a 1 4 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 black market of illegal, unregistered, and possibly substandard devices or vehicles and the use of poorer quality batteries charged in private homes. This model creates the wrong incentives when it comes to the safety of the operators and other street users. DOT strongly supports a minimum pay standard that relieves some of this pressure. The predominant business model of these companies also ignores local laws and rules. Third- party delivery apps are required to comply with the commercial cyclist law codified in Sections 10-157 and 10-157.1 of the New York City Administrative Code and Section 4-12(p)(4) of Title 34 of the Rules of the City of New York which apply to any business that use a bicycle or any human powered wheeled device or any motor-assisted device not capable of being registered with the DMV to deliver food, goods, or parcels. Pursuant to amendments made by the City Council in 2017, these requirements apply even when the delivery workers are independent contractors and not direct employees. Under the law, third-party delivery apps must: 1. Register with DOT; 2. Ensure that delivery contractors do not use illegal mopeds in the course of their work as such vehicles are illegal on the streets of New York City, and it is a violation for any business to use or permit one to be used on their behalf for commercial purposes; 3. Assign each bicycle operator a three digit identification (ID) number, which DOT can expand to four or more digits if needed under the law; 4. Issue bicycle operators’ ID cards containing the name, ID number, and photo of the bicycle operator as well as the name, address, and phone number of the company. Bicycle operators must carry those ID cards at all times when making deliveries or operating a bicycle on behalf of a company; 5. Provide a protective helmet and retro-reflective outerwear displaying the company’s name and ID number to any bicycle operator; 6. Ensure that each bicycle has a white headlight and red taillight, a bell or other device capable of giving an audible signal for at least 100 feet, brakes, and reflective tires or a reflector mounted on the spokes of each wheel; this equipment must be provided free of charge, and under no circumstances should bicycle operators be required to spend their own money on helmets or other safety equipment; 7. Post the official commercial cyclist safety poster at their business site, or if they have only a post office address within the City, provide written notice of such information to each operator; 8. Maintain business records showing that every operator has completed the commercial cyclist safety course available on the DOT website prior to making deliveries, and make such records available to DOT or the NYPD upon request. In December 2021, DOT’s Commissioner sent a letter to over a dozen app-based deliver companies1 reminding them of the requirement to comply with the above mentioned provisions, as well as of their outstanding fine amounts for violations of the commercial cyclist law. 1The companies to which DOT sent letters were GrubHub, DoorDash, UberEATS, Relay, Postmates, Hungry Panda, Delivery.com, Instacart, Favor, MealMe, Waitr, Drizly, EatStreet, Deliveroo, Shipt, BeyondMenu, Amazon Fresh, and goPuff 2 5 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 Thank you again for the opportunity to submit this public testimony. DOT looks forward to continuing to work with our agency partners to enforce existing rules, implement and enforce new laws in this area enacted by the City Council, and explore further possible regulations. 3 6 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 June 16, 2022 Testimony of AJ Yusuf, Neighborhood Organizer, Outreach NYC Mayor’s Office of Immigrant Affairs Before a Public Hearing on App-Based Food Delivery Workers Hosted by the New York City Mayor’s Office of Consumer and Worker Protection 7 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 Thank you to Commissioner Mayuga and the team at the NYC Department of Consumer and Worker Protection (DCWP) for hosting this very important public hearing on the working conditions of app-based food delivery workers. My name is AJ Yusuf, and I am a Neighborhood Organizer, part of the Outreach Team with the Mayor’s Office of Immigrant Affairs. Within our work, we have seen firsthand the hardships and challenges that delivery workers and particularly app-based food delivery workers face across this city, both prior to the pandemic and more so as they were at the frontlines of COVID-19. Through our touchpoint with delivery workers, we know that many delivery workers do not have social security cards. Because of this, many of them apply for and use ITIN numbers to work and file for taxes. Given their status and the massive shutdowns across all sectors during the pandemic, many delivery workers lost their jobs or saw diminished income and had limited avenues for seeking much needed supports – including federal government financial supports accessible only by US Citizens. This reality made their economic situation that more precarious. While some were able to access privately funded economic assistance and apply to the New York State’s Excluded Worker’s Fund, the need far exceeded the funds allocated and the funds were exhausted in less than two months. I want to share the story of Borkot Ullah, a member of an organization called Desis Rising & Moving also known as DRUM. He was a young delivery worker in Queens. He echoed many of the same concerns noted here in this hearing. Borkot was struck and killed by a driver who ran the light while being chased by the NYPD. Borkot had fought and applied for the Excluded Worker’s Fund, which he did not receive due to his tragic death. Following his death, his family became destitute as they relied largely on his income for sustenance. The life of a delivery worker is fraught with danger, and they deserve dignity and respect, but above all receive fair pay for their work. Expenses of Being a Delivery Worker Delivery workers have a high upfront cost for doing this job. To become a delivery worker, they must personally invest in expensive and sturdy bicycles or e-bikes, bicycle maintenance, appropriate safety gear (elbow pads, helmets, reflective vests), weather protection gear (rain jackets, bicycle mittens) as well as monthly unlimited MTA cards, before they can even begin to serve as delivery workers. According to members of DRUM, these costs can range from about $2,700-$2,800. Any discussions around minimum wage should factor in cost of equipment and other materials needed to do the job safely as well as the impacts of stolen equipment. 1 8 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 Earnings, Time, Scheduling and Pay of Delivery Workers As the growth and use of food deliver applications rose, especially in 2020, the availability of jobs through these apps became more competitive. By the end of 2020, DoorDash controlled 45% of the food delivery market and earned nearly $3 billion in revenue, with UberEats at 22%, Grubhub at 18% and Postmates at 8%.1 Establishing a base salary and minimum wage for delivery workers is long overdue. Delivery workers often work between 8 and 16 hours shifts, and if the number of delivery orders are low on any given day, they can make as little as $40 a day. Often delivery workers would turn on their app for hours with no delivery requests resulting in wasted hours that they could be earning wages elsewhere. A minimum wage would ensure an income for what is a very important or essential service in a city like New York. Anecdotally, we have also heard from delivery workers that these delivery apps often keep the tips or keep a percentage of the tips they have earned. A minimum wage of $15 an hour is not sustainable Any minimum wage for delivery workers must be commensurate with NYC’s cost of living, initial personal investments in the equipment needed to do the job and factor in other modes of transportations to make deliveries on time. If the minimum wage is too low, this will negatively impact their quality of life and ability to provide for themselves or their families. Safety of Delivery Workers Many delivery workers face unsafe working conditions every day – they are the targets of bicycle or e-bike thefts, the victims of assaults or attacks resulting in death, or suffer from workplace accidents without any health or sick leave coverage. Delivery workers also endure harsh weather conditions, deliveries are made rain or shine; as well as harsh or rude behavior from customers who do not value their work and sacrifice. Health of Delivery Workers Due to the unstable and precarious nature of delivery work, workers must pay for health insurance out of pocket. None of the delivery apps nor restaurants who employ them, provide healthcare of any kind. Many delivery workers use their ITIN numbers to file taxes and if their yearly income rises above $50,000, then their insurance premiums through Get Covered NYC can increase exponentially causing them to either lose healthcare coverage or forgo it altogether. The life of a delivery worker is exhaustive and uncertain, often with no income stability or employment security. Yet, NYC’s delivery workers kept NYC running throughout the pandemic. 1 https://hoteltechreport.com/news/online-ordering-food-delivery-statistics 2 9 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 The Mayor’s Office of Immigrant Affairs strongly advocates for a sustainable minimum wage for delivery workers that allows them to become even more integrated into the city’s economic growth and further supports their contributions in recovering from COVID-19 and fully opening NYC. Thank you. 3 10 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 TESTIMONY OF NEW YORK CITY COMPTROLLER BRAD LANDER Department of Consumer and Worker Protection’s Delivery Worker Public Hearing Wednesday, June 15, 2022 Thank you for holding this Department of Consumer and Worker Protection (DCWP) hearing on delivery worker pay and working conditions, including time and scheduling, expenses, health and safety issues, and challenges workers face and for the opportunity to comment. New York City must be prepared for the economic road bumps that lie ahead. In order to do so, the City must invest in an economic recovery that will lift all boats and support workers that keep our city afloat, especially the app-based delivery workers who have risked their lives through the pandemic to provide food and other goods to New Yorkers who were unable or unwilling to leave their homes. Last year as a Council Member, I was the prime sponsor of Local Law 115 of 2021, which established minimum per trip payments to third-party food delivery service and third-party courier service workers. I successfully advocated alongside Los Deliveristas Unidos and Councilmembers Carlina Rivera, Justin Brannan and Carlos Menchaca for landmark protections for deliveristas. Together, we passed a six-bill package that, among other things, mandates minimum payments per trips, grants workers access to restaurant bathrooms, requires companies to be transparency about tips and total pay, and limits how far they can be asked to ride. Now, DCWP must follow through by establishing a Living Wage Standard for app-based food delivery workers. This standard is critical to ensuring these essential workers can pay rent, put food on the table, and provide for their families. Worker Justice Project estimates that there are about 65,000 delivery workers in New York City. This workforce skews young: 59 percent of those surveyed by Worker Justice Project and Cornell were under 30 years of age. These workers, who predominantly live in the Bronx, Queens, and Brooklyn, are immigrant workers hailing from in Latin America (namely Mexico and Guatemala), South Asia (Bangladesh), West Africa and China. Many deliveristas work to support their families: more than 40 percent of respondents support a child or family member. Of that 40 percent, 37 percent support two children and 28 percent support three or more children. CEOs of delivery app companies like DoorDash and UberEATS earn millions of dollars annually, while delivery workers on the ground make poverty wages. Worker Justice Project and Cornell report that after expenses, workers earn $2,345 per month including tips. They estimate net hourly pay to be about pay per hour is about $12.21 -- below New York State’s legal minimum wage threshold of $15 per hour. All the while, these companies have seen their revenues grow more than 200 percent in the past five years. 11 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 Time & Scheduling Delivery workers’ pay and working hours are shaped by volatile factors outside of their control. Most apps, except for Relay and Chowbus, do not pay workers a fixed hourly rate: instead, they offer a “base pay” that is dependent on mile, minute, and order. The average base pay ranges between $2.00 and $5.00 per delivery without tips. Tips, which represent 44 percent of workers’ earnings, are not income and are completely up to customers’ discretion. Workers are given an estimate of the tips they will receive because apps allow customers to change their tip allocation up to an hour after their food is delivered. Workers in this industry rely on deliveries as their primary source of income: most delivery workers surveyed by Worker Justice Project and Cornell named app-based work as their primary and only job. 81 percent of respondents work more than 5 days a week and 64 percent reported working 6 to 7 days a week. Deliveristas work across multiple food delivery apps because working for just one would not provide sufficient income to sustain oneself or a family. The apps only compensate workers for time spent on a delivery order, not for time spent waiting for orders. This means deliveristas work until they complete a sufficient number of deliveries to reach their desired pay, no matter how many hours it takes. Food delivery apps can assign delivery workers to any restaurant, no matter its proximity to the workers’ location. As a result, in addition to workers waiting for the app to assign their next order, they must travel substantial distances to pick up the order. Workers reported that half of all deliveries take more than 30 minutes to complete. The Department of Consumer and Worker Protection must establish a living wage for deliveristas, and the pay standard must pay workers for active and waiting time. Expenses Under city law, restaurant must cover their delivery workers’ expenses including bikes and phones. However, app-based delivery workers must make upfront investments to work in this industry. E-bikes can cost between $1,000 and $2,200, and lithium batteries cost about $600 each (workers typically buy two). Workers spend an additional $300-350 per month on cell phones, data plans, rain jackets, and bike maintenance. By establishing a living wage standard for delivery workers, the City can facilitate a more level playing field for restaurants and food delivery apps. Health & Safety Delivery workers have suffered assaults and abuse on the job: in 2021, fourteen deliveristas lost their lives delivering food. 54 percent of workers surveyed by Worker Justice Project and Cornell reported bike theft. 30 percent of this subset of workers reported physical assault. New York City’s streets, which are functionally deliveristas’ workplace, pose a health and safety risk. According to Transportation Alternatives, more than 70 pedestrians and bicyclists have been killed in 2022 to date. Crashes killed 273 New Yorkers in 2021, making it the deadliest year in our city’s streets since 2013. According to Worker Justice Project and Cornell, 49 percent of respondents suffered an accident or crash on the job. Investing in street safety will provide safer conditions for delivery workers to do their jobs. 12 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 Extreme weather events, including floods and snowstorms, are another health and safety risk for deliveristas. When tore through New York City, workers delivered food through Hurricane Ida resulting in costly damages to their e-bikes. Apps provide surge pricing, a preserve incentive, during these events to temporarily boost pay for workers that weather the storm. New York City’s Opportunity New York is one of the major markets for app-based food delivery in the United States. Big companies are swallowing up smaller competitors: last year, DoorDash, GrubHub, and UberEats each represented roughly a third of the market in New York City. Right now, delivery apps focus on groceries and restaurant food. However, this industry is expanding to support health companies (including pharmacies) and department stores. The Department of Consumer and Worker Protection has an opportunity to lead the nation by establishing a minimum wage standard for this growing industry that adequately compensates delivery workers for their pivotal contributions to our City and their immense labor and ensure they can take part in our economic recovery. 13 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 DISTRJ<..T OFFICE OOM\tll"'IJ.'t:S ,so sn I .\\T.Xl I'.. \RD fll)Olt CIL\I& aP c:a:_,,,u,urna.. ON U.OIIICilt.t..TION 1 llRl>t)IJ..\ ',:-.r 11215 CITY IIALLOl'FICE 2'iO llllll\1)\1,.\\, SI I If. I'S! THE COUNCIL OP )t&;;Mafio.111 or Co'MM1nr.1: ON <.:u.n R..t.l. Ml AIM.I, 1..1111.AAIU.. ,,,.,o r 1,TFJIN4.'l'ION.U. '"'-n:.ar.aoa p RJ:JJ.'l'IONI " \\ \ORk, I t•HHi• (212:J 'AA-l�l(f) THE CITY OF l E\'\' YORK Mr,◄m ••• c,..1u1T1t• t1N Mr"•iT\l H1 "•n•• o-i• .,Ml1T11 1 ..1 -.,., fA,X: J21J: -ijft <%" A.vUK"Titt"'!'1 f ..,n.1"1dt:rninr,l ff\T t,...--,.. SHAHANA HANIF ,q TH l)ISTl!ICT, 1111001,;f.\'N Good morning. I am Council Member Shahana Hanif. Thank you to the Department of Consumer and Worker Protection for holding this hearing and for granting me the oppo1tunity to speak. I am here today to express my suppo1i for establishing a living and minimum wage for app delive1y workers in New York City. For too long, the livelihoods of our City's delive1y workers have depended on the generosity of customer tips. This is not a reliable source of income. When a delive1y worker is offered an order, the amount they are told they will be paid in tips is often listed as an "estimate." Most apps give customers up to an hour after their food is delivered to change the amount of tip they originally listed. If a customer is dissatisfied because an order was delayed, they may decide to remove the tip. Additionally, tipping for food orders has drastically declined toward pre-pandeinic levels as the economy has re-opened 1. This is a highly unstable fo1m of income for the 65,000+ delive1y workers across the city, with over 40% of whom are suppo1iing family members2. Deliveristas are predominantly young people, under 30 years old, people of color, and immigrants, and as the Chair of the Committee on Iminigration, this issue is of dire importance to me. Despite being deemed essential during the pandeinic, the City's deliveristas remain unprotected in the largely unregulated platfonn economy. A deliverista living wage standard will establish national work standards in the app delive1y industiy, promote inclusive sector growth, 1 https://www.nytimes.com/2021/06/04/upshot/tipping-pandemic-new-york html 2 https://losdeliveristasunidos.org/ldu-report 14 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 and build a future-focused economy with a local economic impact in every corner of New York City. I want to thank the Workers Justice Project, Los Deliveristas Unidos, and Desis Rising Up and Moving (DRUM) who are continually fighting to bring awareness and basic protections for our City’s delivery workers. Through their organizing, allyship, and lobbying, they were able to introduce the deliverista bill package that guarantees the first-of-its-kind labor rights for New York City app delivery workers. However, the fight for fair and just work conditions is far from over and we must institute a fair minimum pay for our delivery workers. I look forward to continuing working with our City’s deliveristas and community-based organizations to make New York City a safer and fairer place to work and a minimum wage is the next step in doing so. Thank you for your time and consideration. 2 15 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 Los Deliveristas Unidos/ WJP Date: June 15th, 2022 To: NYC Department of Consumer and Worker Protections (DCWP) From: Hildalyn Colon Hernandez, Director of Policy & Strategic Partnerships for Los Deliveristas Unidos/WJP Re: Minimum Pay Standard Study for App-Based Food Delivery Workers ______________________________________________________________________ Dear DCWP Comissioner Vilda Vera Mayuda: Los Deliveristas Unidos (LDU) is the largest worker-led movement founded by Deliveristas, app delivery workers, that work for multiple delivery platforms in NYC. Since 2020, LDU is fighting to build, establish new labor rights and standards that better the conditions of app delivery workers in NYC and beyond. LDU is a new organizing effort powered by the Workers Justice Project (WJP). LDU's long journey to justice started as Deliveristas band together throughout NYC streets as they serve and feed New Yorkers and help to sustain small business during the COVID -19 pandemic. On April 21st, 2021 - Los Deliveristas Unidos (LDU) organized a historic march of more than 2,000 app delivery workers biked from Times Square to Foley Square to demand better wages and protections from the tech giants that run delivery app platforms. In September 2021, Los Deliveristas partnered City Council Members Justin Brannan & Carlina Rivera and former city council members Brad Lander (now NYC City Comptroller), Carlos Menchaca to introduce the LDU bill package - NYC Delivered Justice to Los Deliveristas. LDU obtained a major labor victory in their journey to seek justice, when the NYC Council overwhelmingly voted to approve this landmark bill package. These first-of-its-kind labor rights for NYC's app delivery workers, such as minimum pay, Deliveristas will be able to establish the distance they want to travel, bathroom access, and other provisions. Deliveristas started the year 2022 with labor rights, 1st Phase Deliveristas Laws require that app delivery platforms must be licensed by DCWP to operate in NYC; apps must notify Deliveristas how much the customer tips for each delivery and their total pay and 16 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 Los Deliveristas Unidos/ WJP tips for the previous day. In addition, Deliveristas have better access to restaurant bathrooms when they pick up an order. And the journey to justice is far from over, on 2nd Phase of the Deliveristas Laws require that app mus provide an insulated bag to workers; workers must be pay once a week and prohibits app charging payment fee to workers, and it must provide the Deliveristas all the information before he or she accepts a delivery. But more importantly, now Deliveristas have the power to limit how far they will travel from restaurants and refuse to use bridges or tunnels. The NYC Department of Consumer Affairs & Workers Protection (DCWP) implements and enforces the new Deliveristas laws and regulates apps in NYC. The 3rd Phase of the Deliveristas Laws will culminate with establishment of the minimum pay for app delivery workers in the industry on Jan 1, 2023. Before the implementation of the minimum standard, DCWP will host a virtual public hearing this Wednesday, June 15th, 2022 from 1pm to 4pm. The NYC Department of Consumer and Worker Protection (DCWP) is inviting the public, workers, elected officials, and the community to testify about delivery worker pay and working conditions, including time and scheduling, expenses, health and safety issues, and challenges workers face. Main Points ● Los Deliveristas Unidos (LDU)/Workers Justice Project is demanding that DCWP establish a living wage for Deliveristas that allow them to sustain his or herself and their family. ● Los Deliveristas Unidos & Workers Justice Project are demanding NYC to establish a minimum pay standard for Deliveristas in NYC. A strong living wage standard will be groundbreaking for underpaid essential workers, immigrant and people of color, app delivery workers who otherwise are excluded from standard labor rights. ● We urge the City’s Department of Consumer and Worker Protections to consider the substantial labor costs borne by app delivery workers who are 17 FILED: NEW YORK COUNTY CLERK 07/18/2023 09:22 PM INDEX NO. 155947/2023 NYSCEF DOC. NO. 51 RECEIVED NYSCEF: 07/18/2023 Los Deliveristas Unidos/ WJP non-employees, the dangerous conditions of their work, the prevailing wage of delivery services in the city, and the overall benefit to “rebuild, renew, reinvent” to the city’s economy in increasing delivery worker pay. ● Deliveristas’ living wage cannot depend the generosity of some customers. App must pay their fair share and pay Deliveristas a living wage for their essential work. ● Deliveristas had and continue to work on the frontlines - as they feed New Yorkers and sustained thousands of small busines during the COVID-19 pandemic. In addition, Deliveristas sustain New Yorkers during extreme weather conditions caused by climate change and city emergencies, such as Hurricane Ida and even during Sunset Park Shooting lockdown. ● Deliveristas are essential workers, as police officers, doctors, nurses, ride share drivers and teachers - NYC & apps must paid and treat them as such. ● The explosion of apps delivery has been great for startups’ investors — however Deliveristas who realize this hard job during extreme weather conditions - rain or shine, snow storms, and even during Hurricane Ida - have been emerge in poverty wages for past few years. ● The establishment of Deliverista Living Minimum standard go hand and hand with Mayor Adams’ “Rebuild, Renew, Reinvent: A Blueprint for New York City