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USA: First minimum pay rate passed for ride-hailing app drivers

Author: Alexia Fernández Campbell, Vox, Published on: 6 December 2018

"New York City passes nation’s first minimum pay rate for Uber and Lyft drivers", 5 December 2018

New York City is giving a raise to Uber and Lyft drivers...city officials passed the nation’s first minimum pay rate for drivers who work for ride-hailing apps, ending a contentious two-year battle to make sure drivers can earn a decent living.

Starting in January, ride-hailing companies will start paying drivers around $17.22 per hour (after expenses) — about $5 more per hour than the current average of $11.90 per hour...

Because Uber and Lyft drivers are considered independent contractors and not employees, they are not subject to the city’s minimum hourly wage, which will reach $15 per hour at the end of the month. The new rules essentially get around that loophole and ensure that drivers are earning at least the minimum wage, with a few dollars extra to cover payroll taxes and some paid time off...

Uber and Lyft are both pushing back against the pay rules, saying it will make rides more expensive for customers and will limit business competition...

Via, another ride-sharing service, seemed to embrace the changes. “As the industry leader in driver earnings in New York City, we are looking forward to working with the TLC on implementing this rule,” the company said...

Read the full post here

Related companies: Lyft Uber