USA: 2 ride-sharing companies sue to block new minimum-wage rule for drivers in New York City

Author: Ben Kesslen, NBC News, Published on: 1 February 2019

"Lyft sues over new rule that it pay its NYC drivers $17 an hour", 1 Feb 2019

Two ride-sharing companies that compete with Uber are suing to block new rules requiring they pay their drivers in New York City a minimum wage of at least $17.22 per hour after expenses.

Lyft and Juno filed suit Wednesday against the city over the regulations that are set to go into place Friday. The rules are the first in the U.S. to mandate a minimum wage for ride-share drivers.

Drivers and their advocates say the regulations would ensure that the typically low-paid employees are able to make a livable wage...

In a statement to the court, Lyft said the current regulations would “increase prices for passengers,” “[reduce] ride demand overall,” and also “increase congestion” in heavily-trafficked areas.

The company is also arguing that the regulations would stand to benefit Uber, the biggest ride-sharing app in the city.

The new rules, according to Lyft, encourage drivers to take passengers on shorter rides at greater frequency...

The Independent Drivers Guild fought for the new rules, believing they would increase the salaries of almost all drivers who currently make less than minimum wage by “an average of nearly $10,000 per year.”...

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Related companies: Juno Lyft Uber