Striking a balance: What New York’s new legislation for delivery work means for gig workers everywhere

gig workers

If you’ve ordered takeout during the pandemic, chances are you’ve tapped into the gig economy. As this industry has exploded, one city is stepping up to ensure the rights of delivery workers are preserved and protected.

The New York City Council recently passed a six-bill legislative package focused on providing protections to the city's food delivery workers, according to the council. The bills — which have already been sent along to Mayor Bill De Blasio — will amend the administrative code of New York City and will target questions relating to the treatment of gig workers, including payment policies, bathroom access, and distance and route limits.

Gig workers have been fighting for their rights across the U.S., with workers for delivery platforms like Grubhub and Yelp asking for basic benefits, income protection and even guaranteed bathroom access. The first time gig workers saw any meaningful legislation being proposed to address similar issues was Assembly Bill five in California, which went live in January of 2020, and required companies that hire independent contractors to reclassify them as employees.

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But while the NYC bill is well-intentioned, it faces an uphill battle and could actually harm workers in the long-term, according to Matt Spoke, founder and CEO of Moves Financial, a social finance product for gig workers.

“I think legislators have been eager to find solutions, which is positive,” he says. “But I think they also fail to understand some of the nuances of the gig economy, and so often the solutions are a little bit like square hole, round peg — it doesn't perfectly fit.”

Under the new legislations, the New York City Department of Consumer and Worker Protection will be tasked with conducting a study to determine how much delivery workers should be paid for their work. It would also prohibit food delivery services from charging their workers fees related to customer payment methods, and would require that food delivery workers be paid at least weekly.

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However, too many restrictions and mandates on payment processes could work against delivery workers, Spoke says. If a restaurant is forced to shoulder these costs, they may raise prices and cut staff. Additionally, major delivery platforms might want to leave the New York market, which would limit the amount of services a gig worker can use and affect the growth of their future wages.

“If there is less opportunity for gig workers, that's not a positive thing,” Spoke says. “It's about making sure that whatever laws we do pass ensures that that flexibility is front and center.”

But despite the growing pains, legal action in favor of the gig worker does have positive impacts, especially when it comes to their comfort. One of the proposed bills demands workers get access to the restrooms in any establishment listed under the delivery service app while on the job — a fundamental right they’ve been championing for years.

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Another would allow delivery workers to specify their “maximum distance per trip” and give them the option to refuse trips “over bridges or tunnels,” according to the council. Additionally, the food delivery provider would be required to disclose the address and estimated time and distance to the food delivery worker before the worker accepts the trip.

With more and more people turning to gig work as a means to escape burnout or simply to make some side cash in the wake of the pandemic, Spoke anticipates other states with major cities, like Massachusetts, New Jersey and Illinois, taking the same approach. But he hopes that the bills proposed in New York — which he predicts will receive some healthy push-back — and the bill in California — which was overturned several times before passing — serve as a framework, and a cautionary tale.

“We're really trying to figure out a long-term balance,” Spoke says. “I do hope that we see the government showing interest, I just hope that they'll show an interest in finding a balanced outcome that favors worker flexibility first and foremost, but also allows businesses to operate in this industry profitability.”

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Gig economy Employment and benefit-related legislation COVID-19
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