On December 22, Lyft lost an appeal to fight a city rule that sets a minimum wage for New York’s For-Hire Vehicle (FHV) drivers, according to new court papers. A lower court judge in May 2019 threw out the app company’s lawsuit, which sought to overturn a part of the Taxi and Limousine Commission’s (TLC’s) rule that Lyft said gave Uber an unfair advantage through the company-specific utilization rates.
The TLC’s rule is designed to ensure drivers make an average of $17.22 an hour – or $15 minimum wage after taxes and expenses.
The First Department, Appellate Division upheld the earlier decision finding that the TLC’s rule “has a rational basis and was not unreasonable.”
Lyft claims the rule has resulted in 10,000 fewer New Yorkers being able to earn on their platform. “We will continue fighting for drivers and are currently exploring all our options,” the company said in a statement.
Source: New York Post