According to DigitalTrends.com, “Rideshare drivers in New York City may soon be covered by a new rule that guarantees they get paid a minimum wage equivalent of $17.22 per hour….” 80,000 drivers are employed by Uber, Lyft, Juno, Via in New York City alone.
Previous issues between drivers and rideshare companies centered on expense reimbursement and the drivers’ employee versus independent contractor status. The TLC’s set of proposed rules address both issues.
The line between employee and contractor status is often blurred in the U.S., despite the Internal Revenue Service’s 20 Factor Test to determine the difference. In general, compensation and expense reimbursement are contractual items not covered by federal, state, or municipal employee laws.
Right now they make $15 per hour minimum wage, but now TLC hasproposed $17.22 hourly minimum compensation plan adds $2.22 to the area’s $15 per hour minimum wage to account for driver expenses and unpaid travel associated with paid rides.