Part 5/8:
In response to the wage law, delivery apps have adjusted their practices, making it harder for workers to receive tips. This adjustment is an example of how well-intentioned legislation can lead to unforeseen consequences that complicate the issues they aim to solve.
As firms adapt to this changing environment, one significant conflict emerges: the classification of gig workers. While the new pay guarantees in New York City still classify drivers as independent contractors, the debate over reclassification continues to gain traction across various states. This ongoing legal and regulatory scrutiny places additional pressure on the already struggling delivery apps as they search for a sustainable business model.