Coalition calls for stronger enforcement and safeguards to prevent app companies from evading worker protection laws
NEW YORK, NY — New reporting shows that GrubHub outsourced a significant portion of its delivery operations in New York City, in an effort to avoid complying with the city’s minimum pay law for delivery workers.
According to the investigation, internal company documents state that GrubHub sent orders to a third-party provider to reduce labor costs after New York City implemented historic delivery worker pay protections. The third-party app, Relay, had been deemed exempt from the minimum pay law after it took effect in 2023.
In response, the Justice for App Workers coalition is calling on city officials to investigate the issues raised in the report and ensure that all app companies in New York City are fully complying with worker protection laws as they were intended, those that aren’t are punished, and that workers are reimbursed with interest any pay they are owed.
“Delivery workers fought for years to win fair pay protections in New York City. This reporting raises serious concerns about how app companies are exploiting loopholes to avoid paying us what we’re legally owed,” said Bimal Ghale, leader of the United Delivery Workers Association (UDWA). “This clearly is part of a larger pattern of these companies sidestepping hard-earned protections when enforcement is weak.”
The minimum pay law was designed to ensure delivery workers, many of whom are immigrant and working-class New Yorkers, are paid fairly for their labor and are not forced to absorb the full cost of doing critical work.
But since the law was implemented, workers have raised concerns that app companies continue to exploit them through opaque pay systems, unrealistic delivery times, and continued unfair lockouts and deactivations.
Despite securing a $20 delivery worker minimum wage two years ago through the New York City Council, the absence of lockout protections has left workers unable to secure necessary work, putting their livelihoods at risk. Justice for App Workers raised this concern with the framing of the law since its inception.
“For years we’ve seen workers lose income through reduced orders and sudden lockouts with no explanation,” said Pasang Sherpa, delivery worker and organizer with UDWA. “When we organize and win protections, companies shouldn’t be able to undermine them.”
According to the coalition, the new reporting underscores the need for stronger oversight to prevent companies from evading worker protection laws through subcontracting, lockouts, or other workarounds.
“Protections only work if they’re enforced,” added Yam Rijal, Vice President of UDWA. “Without oversight and accountability, workers will continue to be left behind.”
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Justice for App Workers is a national coalition movement representing more than 130,000 rideshare drivers and delivery workers, united in their demands to transform their industry. This means living wages, a safe working environment, an end to unfair deactivation, quality healthcare benefits, reliable bathroom access, and the right to form a union. Together, drivers and delivery workers are taking on the multi-billion dollar app industry to win dignity at work. Learn more and join the movement at JusticeForAppWorkers.org.