Regulations

Lyft Suing NYC To Block Higher Driver Wage Mandate

Posted on January 30, 2019
Lyft claims the wage law hurts its ability to compete with Uber. But driver groups complain that Uber and Lyft have been allowed to dominate the market without having to follow many of the same rules that apply to taxis. (Flickr.com photo by Marco Verch)

Lyft claims the wage law hurts its ability to compete with Uber. But driver groups complain that Uber and Lyft have been allowed to dominate the market without having to follow many of the same rules that apply to taxis. (Flickr.com photo by Marco Verch)

Lyft will file a lawsuit against the city of New York on Jan. 30 to block the implementation of a new law requiring a minimum pay for drivers, according to a source.

The law, which passed last December and would go into effect Feb. 1, would mandate the wage floor of $17.22 per hour after expenses for drivers, or $26.51 per hour before expenses.

In a statement, Lyft argued the new rule would make it more difficult for the company to compete with Uber. Ride-hailing app Juno is joining Lyft on the lawsuit, but Uber and Via are sitting it out for now.

The Verge article here

Related Topics: city regulations, driver pay, labor laws, legal issues, Lyft, New York City, New York operators, New York Taxi & Limousine Commission, rates, shared rides, TNCs, Uber, wage lawsuits

Comments ( 2 )
  • Chuck Cotton

     | about 7 months ago

    If attorneys would ever wake up and challenge the fact Uber and Lyft has zero OPERATING AUTHORITY from 49CFR300-399, tht is required in all 50 states , every law suit would be thrown out. Unregulated companies who refuse to comply with the USDOT/FMCSA rules and regs are clearing violating also the RICO ACT. It is against the rule of law for an unregulated operation to operate in a regulated industry. Uber and Lyft have been bluffing regulators and lawmakers since inception. Not any more as the SEC is expected to turn down their IPO applications as it clearly against the laws to allow anyone operating unregulated and criminally to go public.

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