Drivers employed by Uber, Lyft, Via and other ride-hailing car services in New York City have won a victory as they are now set to be paid the minimum working wage in the wake of a pivotal vote on Tuesday by the city’s Taxi and Limousine Commission.
The adoption of the minimum wage – which comes to $17.22 per hour after expenses – will mean that New York is the first city in the US to establish a minimum pay rate for app-based drivers.
Taking effect at the end of the year, the new rules are expected to raise drivers’ earnings by $10,000 on average a year and require companies to be transparent on how they calculate pay and car leasing costs.
“I believe all New Yorkers are willing to pay a little more and wait a little longer so the people transporting them are able to provide for themselves and their families,” Meera Joshi, chair of the New York City Taxi and Limousine Commission, said in a statement.
The rules came about in response to a proposal developed by the economist James Parrott, fiscal policy director of the Center for New York City Affairs at The New School, which evaluated how much drivers are paid and put forth the idea that drivers should receive $17.22 an hour.
Drivers with app-based car services have been campaigning for years to see higher wages and have confronted their employers for carving out too much in profits from their pay.
There are reported to be more than 80,000 drivers who are employed by ride-hailing app companies in New York, according to the NYC Taxi & Limousine Commission.
Contact Ellen Kelleher at [email protected]