In recent years, several large progressive cities have begun pushing aggressive minimum wage policies for food delivery and rideshare. The results have been predictable: A decline in the number of gig tasks being performed, an increase in prices for consumers, and a reduction in drivers as platforms restrict access to aspiring gig workers.
But in addition to the economic fallout, these policies also may run afoul of the law. In response to New York City's recent expansion of its delivery driver minimum wage, the gig company Instacart has sued the city. Instacart's lawsuit argues that NYC's minimum wage ordinance is preempted by federal law—an argument that, if it prevails, could send shock waves through progressive city councils across the country.
