Lyft Loses Fight Against Minimum Pay For NYC Drivers

NEW YORK — Lyft has lost a fight against New York City's rules establishing a pay floor for drivers working for ride-hailing apps. Manhattan Supreme Court Justice Andrea Masley issued a decision Tuesday upholding the landmark rules and denying the company's request to strike them.

"This is a victory for the hardworking drivers of New York City, who have been taken advantage of by these companies for far too long," Mayor Bill de Blasio said in a statement Wednesday. "With a guaranteed fair income, they can better provide for their families."

Lyft filed the lawsuit in January challenging the rules, which require app-based drivers to earn at least $17.22 an hour after expenses. The Taxi and Limousine Commission's rules established a formula to determine how much high-volume apps would be required to pay drivers for each trip.

Lyft argued the TLC failed to analyze how the rules would affect the industry and that they would give an advantage to Uber, the dominant ride-hailing firm. The company also contends drivers' rides and earnings have fallen as prices have increased under the rules.

But Masley shot down Lyft's arguments, finding that the TLC rule is "based on facts and an analysis of many factors including its economic impact on the (for-hire vehicle) industry."

Lyft has maintained that it supports last year's city law that mandates minimum pay for drivers even though it dislikes the TLC's approach to implementing it.

"The TLC's rules have hurt earning opportunities for drivers, and will diminish competition that benefits drivers and riders," a Lyft spokesperson said in a statement. "We will continue fighting to provide the best experience for drivers and riders in New York City."

Masley's decision came about a month after Lyft's initial public offering in late March. The company's stock price slipped Wednesday.

The decision also followed news that the city's four major ride-hailing companies — Uber, Lyft, Via and Juno — had underpaid some 50,000 drivers on roughly 200,000 trips in February and March, according to THE CITY.

Driver advocates hailed Tuesday's court decision as a victory.

"The judge’s message today is clear. If ride hail companies want to operate in New York City, they need to pay drivers fairly and follow our minimum wage laws," said Jim Conigliaro Jr., the founder of the Independent Drivers Guild, a labor group for app-based drivers.