The Taxi and Limousine Commission is working to ensure for-hire vehicle drivers receive fair pay.

“Last week I was complaining to the union I drove all the way from New Jersey to the Bronx,” said driver Daouda Diaby. “And I was being paid $16 and I thought this is really unfair.”

The TLC has proposed a nearly 6% pay increase for drivers and a mandate requiring rideshare companies, such as Uber and Lyft, to pay drivers if the amount of time they have passengers drops below 53% in the city.

What You Need To Know

  • The TLC is proposing a nearly 6% pay increase for drivers

  • The proposed rules would prevent rideshare companies like Uber and Lyft from locking drivers out without 72 hours’ notice and prevent them from locking a driver out once logged on for 16 hours

  • The TLC will not only rely on utilization rate based on time but also distance in determining pay

That threshold previously led companies to lock out drivers to artificially inflate the rate—fewer drivers meant higher utilization. Now, the TLC is proposing a formula that also accounts for utilization based on miles traveled to and from a fare. Utilization rates would be re-evaluated as needed rather than annually.

“So that there is not minimums they have to meet, they being the high-volume companies have to meet in order for the utilization rates to be changed,” said TLC Commissioner David Do. “Now we’re saying if you get far too low and you’re not utilizing our drivers enough, then we will step in and change the rules.”

The TLC is also proposing new rules for driver lockouts. Companies would be required to notify drivers 72 hours in advance and could not lock them out for 16 hours after they log onto an app.

“Some drivers reported losing as much as 50% of their income,” said Bhairavi Desai, president of the driver advocacy group New York Taxi Workers Alliance. “All drivers ended up working longer so per hour they ended up working less.”

The TLC believes these changes would deter companies from locking out drivers. Uber has suggested it will take legal action, while Lyft issued a statement to NY1, saying:

“The city's driver pay formula is fundamentally broken, and the TLC's proposed 'solution' only makes it worse. It doesn't solve why drivers were being locked out in the first place…. It's clear nobody is happy with the current situation."

The proposal is now open for public comment, which could lead to changes. The commission is expected to vote on it in March.