Lyft Sues New York City Over Driver Minimum Wage Rules

On Friday, New York City plans to implement some of the country’s most progressive worker protections for ride-hail company drivers. According to new rules approved by the city’s Taxi and Limousine Commission in December, drivers for Uber, Lyft, Juno, and Via would have to make at least $17.22 per hour, no matter the time of day or how many rides they give. City officials say the move would increase the average New York ride-hail driver’s salary by 14 percent and would ensure that every driver meets the city’s minimum wage of $15, even after expenses like fuel and vehicle maintenance. On Wednesday, ride-hail companies Lyft and Juno filed separate lawsuits against the TLC in state court, alleging the rules would unfairly advantage Uber, the city’s largest ride-hail provider. The formula takes into account each ride-hail trip’s length, distance, and something called a “utilization rate.” The economists figured that New York wanted to come up with a fair minimum wage for drivers, sure—but that the city also wanted to incentivize these companies to keep their cars filled at all times.