The firms filed separate complaints in New York state court docket claiming the regulation, which takes impact subsequent week, relies on a misunderstanding of how the meals supply trade works.
Relay Delivery Inc additionally filed a lawsuit in the identical court docket claiming the regulation will put the New York-based firm out of business until it raises the charges it prices to eating places.
Grubhub Inc joined DoorDash in its lawsuit.
The regulation would require that drivers be paid $17.96 an hour, which is able to rise to almost $20 in April 2025. Companies can resolve whether or not to pay drivers hourly or per supply.
Source: economictimes.indiatimes.com