Lyft Loses Court Challenge to New York City's Minimum Wage Rule

(Bloomberg) -- The ride-share company had asked a New York state judge to block a Taxi and Limousine Commission rule, adopted in December, setting a minimum wage for drivers.

  • Judge Andrea Masley denied the request in an order signed Tuesday
  • Rule called for drivers to earn at least $17.22 an hour
  • Mayor Bill de Blasio has worked to cap the growth of app-based, ride-for-hire platforms and reduce traffic congestion
  • Lyft claimed rule will cost it $2.5 million per week
  • Company claimed the rule “threatens to harm drivers and riders alike by reducing driver earnings, raising rider prices and undermining competition” in the industry
  • Lyft also said the rule would give "an automatic and perpetual advantage" to Uber, the biggest company in the industry
  • Ride-share companies classify their drivers as independent contractors who lack the protection of many federal, state and local labor protection laws, including New York’s $15 minimum wage
  • The case is Tri-City LLC v. New York City Taxi and Limousine Commission, 151037/2019, Supreme Court, State of New York (Manhattan).

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