- 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, $4.
The council met Wednesday to vote on the legislation, which Uber $4, 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 $4 that 85% of ride-hailing drivers currently earn less than minimum wage.
Councilmembers were also concerned with the alarming rate at which drivers are signing up for these services -especially since a recent report indicates that ride-hailing apps are $4, not better.
Uber was also recently in the spotlight in NYC, when the New York Unemployment Insurance Board$4 to its drivers, effectively classifying them as employees instead of Uber's preferred classification of 'independent contractors."
In a statement, the Uber-linked local advocacy group Tech:NYC called the measure "a step backwards," saying that diminishing the supply of ride-hailing vehicles won't diminish the demand, resulting in higher prices and longer waits for citizens.
"While there's no doubt City Council means well with this legislation, the truth is it's a misguided solution that'll create more problems than benefits," reads the statement, in part.
Representatives for Uber and Lyft did not immediately respond to a request for comment.