New York Sets Nation’s First Minimum Wage for Uber, Lyft Drivers
Rules will go into effect in January
New York City’s Taxi and Limousine Commission voted Tuesday to set a minimum wage for Uber and Lyft drivers, marking the first time a government in the U.S. has imposed wage rules on ride-hailing companies.
Under the new rules, which go into effect in January, companies are required to pay drivers $26.51 an hour in gross pay, or $17.22 after expenses. That’s slightly higher than the $15 minimum wage that the city requires all employers to adhere to by the end of next year, but is considered equivalent because drivers are independent contractors. About 85 percent of ride-hailing drivers currently make less than the minimum, according to an independent analysis commissioned by the TLC. For those drivers, the new wages will amount to an average annual pay raise of more than $6,300.