Lift Fails to Overdrive NYC Driver Minimum Wage Law
Lifting lawsuit to overturn New York City's minimum wage for ride-hailing drivers failed after a roll by Judge Andrea Masley on Wednesday
The city's rule mandates that companies pay drivers, which are considered independent contractors and not company employees, make at least $ 17.22 an hour after taxes and expenses. To achieve this, the rules dictate that companies must use a "utilization rate" that is based on how much time a driver spends shuttling passengers versus time spent waiting for new rides or idling.
The law enforcement was filed in January, while the rule took effect in February. Uber and competing ride-hailing service June also sued over the rules.
Ride-hailing drivers for companies like Lyft and Uber have been organizing for higher pay, benefits, transparency and a voice at work. Groups of drivers protested Lyft's $ 25 billion IPO. And driver groups are celebrating the judge's ruling.
"The judge's message today is clear," said Independent Drivers Guild founder Jim Conigliaro Jr., according to a report in the Verge. “If ride-hail companies want to operate in New York City, they need to pay drivers fairly and follow our minimum wage laws. This is a proud day for drivers who have been working with the Guild for years, taking on Silicon Valley behemoths, to win this historic pay protection. ”
"The TLC's rules have hurt earning opportunities for drivers, and will minimize competition that benefits drivers and riders," the company customs business insider. "We will continue fighting for the best drivers for drivers and riders in New York City."
That is the law's point: In a market like New York City, which critics say is over saturated with drivers, the new rules penalize companies for having too many drivers on streets that are actively shuttling passengers. The rules are meant to lower the number of useless cars and raise drivers' wages at the same time.
One of Lyft's chief complaints about the new law is that the benefits , and that it will have the opportunity to petition for a different utilization rate next year. Judge Masley rejected Lyft's argument, writing in her ruling that a smaller company like Lyft could still compete with Uber in the ride-hailing market.
In an email to members, the Independent Drivers Guild, which represents some 70,000 NYC ride-share drivers, spotlighted its own role in the new minimum wage law.
"We knew that from these new rules, app companies were still making record profits," the group said. “We showed up, we heard our voices heard, and we made sure that the city sided with workers over app companies like Lyft that continue to make massive profits on our backs.”
You can read the full ruling here. ]
