3 ms·
The NYC report is interesting but also very problematic. The justification of the minimum pay over NYC minimum wage is a mixture of reasonable (DoorDash not pa
by legitster 3y ago
The NYC report is interesting but also very problematic.
The justification of the minimum pay over NYC minimum wage is a mixture of reasonable (DoorDash not paying employee taxes, worker costs) and ... creative (like rolling in cost of living adjustments to minimum wage just because you can).
More importantly:
> First, the model assumes that, from 2023 to 2025, apps will respond to the minimum pay rate by increasing deliveries per hour worked from the current 1.63 to 2.50. This assumption is based on the Department’s identification, using the record-level data obtained from apps, of large differences between apps in the number of deliveries per hour.
Their "model" is making HUGE assumptions about the apps being able to "innovate" in NY, based on data coming from their own black-box reported numbers. And nearly all of calculations about how the pricing, cost to businesses, customer price sensitivity, and take-home pay of the workers is entirely based on very flimsy projections.
I have no problem if NY wants to level the playing field between employees and contractors so that apps have to pay fair. But they are taking things one step further just because they have the mandate to do so. And there's no way that the people setting policy based on these arbitrary numbers are ever going to be held accountable for them.