Crain's New York: TLC approves historic pay rules for app-based drivers

By Matthew Flamm

The Taxi and Limousine Commission made history on Tuesday morning when its commissioners voted to set the first minimum pay-rate in the nation for app-based drivers. 

Driver groups are declaring victory on—and claiming credit for the win—while Uber, Lyft and Juno found a lot to complain about. Only the pooled-ride service Via, which already pays its drivers better than minimum wage, applauded the changes.

The rules, which will go into effect in 30 days, call for minimum gross pay of $26.51 per hour, which will boil down to $17.22 after expenses. That is the equivalent for an independent contractor of $15 per hour, including paid sick leave and payroll taxes.

Most drivers, a TLC-commissioned study found, earn about $11.90 an hour. On an annual basis, the new rules will mean a raise of more than $9,000.

Copyright © 1996-2018. Crain Communications, Inc. All Rights Reserved.