New York City is the first city in United States and around the world to set a minimum wage for Uber, Lyft, and other app-based drivers.
On Tuesday, the New York City Taxi and Limousine Commission (TLC) approved the new rules to protect the earnings of for-hire vehicle (FHV) or app-based drivers.
Under the rules, FHV drivers will earn a standard minimum pay per trip of $27.86 per hour or $17.22 per hour after expenses—the independent contractor equivalent of a $15 minimum wage.
High volume FHV drivers will receive higher minimum pay for wheelchair accessible vehicles. In addition, the rules establishes new minimum pay rates for out-of-town trips, where drivers spend more time driving without a passenger while returning to New York City.
The largest FHV companies in New York City including Uber, Lyft, Gett/Juno, and Via do not classify their drivers as employees but as independent contractors. Therefore, a significant portion of FHV drivers’ earnings go toward covering their vehicle costs and other expenses.
App-based drivers “deserve a livable wage”
In a statement, TLC Chairwoman Meera Joshi said “New York City is the first city globally to recognize” that app-based drivers “deserve a livable wage.” They “need “protection against companies from unilaterally reducing” their earnings.
