February 17, 2019

New ride-hail minimum-wage takes effect while Lyft, Juno lawsuit pending

04 February 2019, 04:11 | Joann Bryant

Lyft sticker adorns back of sharing vehicle

Lyft Juno to withhold pay bump for drivers

Uber competitors, Lyft and Juno, have filed separate lawsuits against New York City's Taxi and Limousine Commission over a new law requiring that drivers for ride-hailing companies make a minimum wage of $17.22 an hour.

New York City already tried to regulate ride-sharing services past year, citing traffic problems and lower driver wages as the reason for capping how many ridesharing drivers could be active at a time.

The two ride-share companies sued to block the pay hike early Wednesday morning claiming it would be too expensive and give market leader Uber a larger advantage.

Instead of a flat hourly rate for all drivers, the city's new minimum wage for drivers will be calculated by how often a driver has a rider in their vehicle while working for a company like Uber or Lyft. The taxi commission estimated that the rule will benefit 96% of the city's ride-hailing drivers to the tune of almost $10,000 annually.

The new policy is created to increase drivers' gross pay to at least $27.86 per hour, or $17.22 after expenses-the equivalent of $15 per hour for a regular employee when factoring in paid sick leave and payroll taxes. The concern from Lyft and Juno is that that utilization rate is more reflective of Uber's business, which captures more market share, than theirs. The reasoning is that because Uber has more drivers and is more widely used than Lyft, it's easier for Uber drivers to reach the $17.22 threshold without Uber having to incur any additional expenses to make up the difference. Masley also said companies could submit the funds for drivers on a weekly basis. It will make it more hard for smaller companies to compete on prices and payment for drivers, as well as continue to service less populated areas, the petition said. New York City Taxi and Limousine Commission, 151037/2019. "They've failed repeatedly, and the TLC should not assist them in their efforts".

"The idea that this lawsuit is about anything other than avoiding paying drivers a fair wage is laughable", Jim Conigliaro Jr., founder of the Independent Drivers Guild, said in a statement. The Independent Drivers Guild, an advocacy group affiliated with the International Association of Machinists and whose funders include Uber, rebuked the escrow option.

Mayor Bill de Blasio addressed the suit by Lyft and Juno on Wednesday, calling it "unconscionable". "The rules ensure minimum income protections, are fair and legal, and we'll vigorously defend them in court", a spokesman for the city's Law Department wrote. Companies can petition the TLC within the first year to use their own rate if it is higher than 58%-something Via has already done. The company did not immediately respond to a request for comment. The greater the "utilization rate"-the percentage of time the auto is occupied-the less the ride-hail service has to contribute to meet the pay threshold".

Uber had stayed silent on its competitors' lawsuits but in its blog post, Uber makes clear that while it is complying with the new law, it's not satisfied with how the TLC has applied the new driver pay minimum either.

Other News

Trending Now

Lionel Messi injury: Barcelona scared striker could miss Real Madrid showdown
Parejo doubled the advantage from the penalty spot after Roberto knocked down Wass trying to dispute a cross. Barca pushed and pushed for a victor , yet they had to be careful of Valencia's sucker punch all the same.

Million-dollar bets rolling in on Rams, Patriots
The largest margin in a Patriots Super Bowl under this regime has been the eight points the Eagles beat them by a year ago. At +2.5, the Rams have the third-shortest odds of any underdog going into the Super Bowl since the turn of the Millennium.

Fast facts about Groundhog Day 2019
Phil's skill is kind of like a coin flip - he's been accurate about 50 percent of the time, according to The Weather Channel . Since hedgehogs aren't native to the United States , another hibernating animal was chosen in their stead: the groundhog.

Indian students arrested in United States after enrolling in fake uni
The agency also detained hundreds of foreign students affiliated with the university and started the process of their deportation. This has been done to restrict the movement of the students, while federal agents probe their immigration status, sources said.

Mariah Carey defies activists to perform in Saudi Arabia
She was arrested with other prominent women's rights activists including Aziza al-Yousef, Eman al-Nafjan and Hatoon al-Fassi. Senate and U.S. intelligence have blamed the crown prince for the killing, but Saudi Arabia insists he had no involvement.

Venezuela's Guaido extends olive branch to China
Vice President Mike Pence told a Florida rally on Friday that the time for dialogue had ended and all options were on the table. It helped spark a week of protests in which 40 people were killed in clashes with security forces, with hundreds more arrested.

Northam tells Virginia Democrat it wasn't him in racist photo, won't resign
Under the photo, text states that Nrotham's alma mater is the Virginia Military Institute and that his interest is pediatrics. Douglas Wilder said on Saturday Northam should be criticized for the photos but stopped short of calling for his resignation.

Pochettino pledges to stay with Spurs
Pochettino insists it will be a club decision if they do not bring anyone in, which he is part of the decision-making process. Especially if a team is developing well, then the players will not be cheap after that. "It's an inspiration for everyone".

Kylie Jenner Celebrates Major Life Changing Milestone
Jenner, who gave birth to her first daughter, Stormi , on February 1, posted on Twitter and Instagram to commemorate bringing her daughter into the world.

I'm happy you are safe, Atiku tells Osinbajo after helicopter crash
In a series of tweets hours later, the APC thanked God the Vice President was safe and sound along with his aides. Osinbajo and all the occupants on the chopper survived the crash continued on the campaign afterwards.