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You are here: Home / New York City just voted to cap the number of Uber and Lyft drivers and will enforce a minimum wage for drivers

New York City just voted to cap the number of Uber and Lyft drivers and will enforce a minimum wage for drivers

August 8, 2018 businessinsider Leave a Comment

caption Uber car service on the streets of New York source shutterstock/MikeDotta The New York City Council just voted 36-6 to require ride-hailing apps like Uber and Lyft to pay their drivers minimum wage, and will prohibit them from hiring new employees for a year. The year-long halt on new driver hires will go into effect 120 days after the bill becomes a law. Uber was also recently required to classify NYC drivers as employees, rather than independent contractors, after the New York Unemployment Insurance Board ruled that Uber must provide unemployment benefits. Councilmember Adrienne Adams said that 85% of ride-hailing drivers currently earn less than minimum wage. In a blow against Uber, Lyft, and other popular and fast-growing ride-hailing apps, the New York City Council just voted 36-6 to require ride-hailing services to pay their drivers minimum wage, and to halt all new driver hires for a year, Outline reports. The council met Wednesday to vote on the legislation, which Uber rallied against in a social media ad campaign, titled #Don’tStrandNYC. The halt on new driver hires will begin 120 days after the bill goes into effect. The estimated 80,000 ride-hailing drivers in NYC had not previously been covered under the city’s minimum wage of $13 per hour, and councilmember Adrienne Adams said that 85% of ride-hailing drivers currently earn less than minimum wage. Council members were also concerned with the alarming rate at which drivers are signing up for these services -especially since a recent report indicates that… [Read full story]




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