Law Blog

New York City Enacts Nation’s First Minimum Compensation Regulation for Ride Hailing Apps

ride hailing
New York City's ride-hailing minimum compensation regulation is the first in the nation

On December 4, 2018, the New York City Taxi and Limousine Commission (T&LC) announced new driver income and transparency rules for drivers of popular ride hailing apps Uber, Lyft, Via, and Gett/Juno. The new rules are anticipated by the T&LC to go into effect in mid-January 2019 and are the first in the nation to set a minimum compensation for drivers of these ride hailing apps. Previously, because drivers were considered independent contractors, they were not subject to any minimum compensation regulations but with these new rules, drivers will earn the equivalent of $27.86 per hour gross, or $17.22 per hour after expenses. The T&LC anticipates that 96% of the approximate 80,000 drivers for Uber, Lyft, Via, and Gett/Juno will receive almost $10,000 more per year.

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