Here’s how DoorDash, Uber, and Lyft are responding to rule change on gig work

The Department of Labor on Tuesday enacted a new rule aimed at preventing the misclassification of workers as independent contractors. The effort, first proposed in October 2022, provides a guide to whether a worker is an employee or an independent operator under the Fair Labor Standards Act, a difference that could afford someone key legal protections and …

Here’s why Uber Eats delivery fees in Seattle just skyrocketed

Uber is not happy with Seattle’s lawmakers — and it’s showing up on customer receipts for food delivery orders. The company announced this week that it is jacking up delivery fees for Uber Eats in response to new worker legislation that is set to take effect this weekend in Seattle. The law, originally passed in May …

Pizza Hut franchisees lay off more than 1,200 delivery drivers in California as restaurants brace for $20 fast-food wages

Two Pizza Hut operators in California are eliminating their in-house delivery services at hundreds of stores, resulting in more than 1,200 driver layoffs, according to federal-employment notices reviewed by Business Insider. The layoffs, effective throughout February, affect Pizza Hut delivery drivers across California, including at Sacramento, Palm Springs, and Los Angeles locations. The Pizza Hut franchisees are …

Pizza Hut franchises in California laying off 2,000 drivers in 2024

At least 2,000 Pizza Hut workers in Southern California are facing layoffs next year when a new law increasing the fast-food minimum wage in California goes into effect in April. A company franchise is set to lay off more than 1,200 delivery drivers in Los Angeles, Orange and Riverside counties in the coming year, ahead of a …

DoorDash offers delivery workers hourly rate, but there’s a catch

DoorDash will give delivery workers the option to be paid a guaranteed hourly minimum rate instead of being paid per delivery, the company said Wednesday. The new option, a novelty in the gig worker industry, comes as DoorDash and other app-based gig companies like Lyft and Uber will have to provide New York City delivery workers with …

What the Hell Is Happening With Food Delivery Apps in New York?

A new rule regarding the minimum wage for app food delivery workers in New York City has led to DoorDash, Grubhub, and Uber all filing lawsuits against the city. You know, just in case you thought ordering dinner was a simple, straightforward transaction. The new NYC law, which passed in June and was initially scheduled to take effect July 12 (more …

EatStreet to lay off drivers as it switches to third-party delivery services

Madison-based online food ordering and delivery service EatStreet Inc. will lay off 26 Wisconsin delivery drivers as it begins contracting drivers from third parties instead of employing them directly. The layoffs will begin around Aug. 21, according to information EatStreet filed with the Wisconsin Department of Workforce Development earlier this month. more

DoorDash Tests Gig-Economy Model With New Hourly Wage Option

A rare move by DoorDash Inc. to offer hourly pay could make its drivers look more like employees under federal labor laws, according to employment attorneys, potentially prompting fresh legal questions about the independent contractor model’s use in the gig-economy. Tech companies that dominate the app-based industry, including DoorDash, classify the workers that provide their services as independent contractors, …

DoorDash adds hourly pay option for drivers

Dive Brief: Dive Insight: Cody Aughney, VP of dashers and logistics business teams at DoorDash, said the company based the change on feedback from some of its delivery workers, referred to as dashers, who wanted more consistency in pay. “They want to know exactly how much they’re going to make for their time spent dashing,” …

Uber, DoorDash sue NYC over minimum-wage law

Uber Technologies, DoorDash and other app-based food delivery companies filed lawsuits on Thursday seeking to strike down New York City’s novel law setting a minimum wage for delivery workers. The companies filed separate complaints in New York state court claiming the law, which takes effect July 12, is based on a misunderstanding of how the food delivery industry works. …