The new wage requirements will create an incentive for companies to increase the number of trips that each driver takes per hour.

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.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?


NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.