Uber and Lyft drivers are part of an emerging sector of the economy referred to as “gig workers.” Being classified as such, these drivers are regulated much differently than other workers in their industry, such as taxi drivers. In a state like New York where Uber and Lyft drivers work at a high volume, legislators have implemented certain regulations that specifically address gig workers in dense cities like New York City.
The Unique Regulatory Landscape of NYC
Under New York’s Vehicle and Traffic Law, rideshare companies such as Uber and Lyft are regulated as “transportation network companies” (“TNC”). To become a TNC driver, a worker must be at least nineteen years old and hold a valid New York State driver’s license issued by the DMV. Further, the TNC you work for must be currently licensed by the DMV, which both Uber and Lyft are.
In New York City, Uber and Lyft are not considered to be a TNC, but are known to be a for-hire dispatch base. They are regulated by the New York City Taxi and Limousine Commission (“TLC”). The TLC regulates dispatch bases, commuter vans, luxury limousines and medallion taxis, though in some different ways. All drivers are required to complete certain licensing requirements and abide by certain standards in order to operate a for-hire vehicle in New York City. In this way, the TLC is more encompassing than the Vehicle and Traffic Law and includes stricter regulations for Uber and Lyft drivers. Also, the TLC mandates different insurance requirements for Uber and Lyft. The insurance that is required by the New York’s Vehicle and Traffic Law is supplanted by the insurance mandates of the TLC
TLC Licensing Requirements
To drive for Uber or Lyft in New York City, you need to satisfy multiple requirements set out by the TLC.
- Minimum age: You must be at least 19 years old to be eligible to receive a TLC license. This is the same age requirement under the state’s Vehicle and Traffic Law.
- Social Security Card. You must have a valid Social Security Number documented on a Social Security Card to be eligible to apply.
- Valid Chauffer’s license – You must obtain a chauffer’s license, which can be Class A, B, C, or E. Classes A, B, and C cover trucks and vehicles that transport hazardous materials. Class E covers taxi and rideshare vehicles and allows those with a Class E license to drive vehicles for hire that can carry up to 14 passengers.
- License points. To classify as a for-hire driver, you must have no more than 5 points on your DMV license with 15 months of your most recent violation date.
- Outstanding citations. You must have no outstanding tickets, parking violations, or fines or fees owed to DMV or TLC.
Once you satisfy the licensing requirements outlined above, you may go ahead and submit an online TLC license application. Then, you must take a drug test at a TLC-approved location. All applicants are required to take a drug test regardless of their history. The next steps include getting fingerprinted, completing a defensive driving course, completing an online wheelchair-accessible vehicle (“WAV”) course, completing a 24-hour For Hire Vehicle (“FHV”) course and exam, and scheduling a medical exam.
These requirements, outlined by both Uber and Lyft, must be completed before a driver can become a New York certified for-hire driver. The license must also be renewed every two years through License Applications, Renewals, and Summonses (LARS).
Minimum Pay Standards and Driver Protections
TLC has specific pay rules for workers that classify as driving for a “High-Volume For-Hire Service,” which includes Uber and Lyft drivers. These rules establish a minimum per-trip payment to drivers. This rule is in the place of a minimum wage that applies to other state jobs in New York. The specific payment that an Uber or Lyft driver can make depends on the trip. As of March 1, 2024, drivers earn a minimum of $1.36 per mile for non-WAV trips and $1.76 per mile for WAV trips.
The pay rules also add protections for drivers who lease a For-Hire Vehicle. The rules require that all leases be written in plaint language and specify all costs to drivers. The rules also specify that, in the case where the vehicle is owned by someone other than the driver, the owner of the vehicle is required to pay the drivers’ earnings promptly. Finally, owners must provide drivers with itemized receipts for all payments, deductions, and surcharges.
More protections in New York for Uber and Lyft drivers include sick leave, which awards one hour of sick pay for each 30 hours worked. Further, drivers may be paid for up to one hour of training time. Lastly, both Uber and Lyft began providing chat support for drivers starting in November 2024.
Congestion Mitigation Measures
New York City has recently implemented a congestion pricing program to reduce gridlock and encourage the use of public transit. The program charges a toll to vehicles entering Manhattan’s Congestion Relief Zone (CRZ), which encompasses local streets and avenues at or below 60 Street. Uber and Lyft vehicles are included in the toll program.
Due to the program, app-bases services like Uber and Lyft now charge $1.50 per trip for rides that begin, end, or pass through the CRZ. Other dispatch bases along with yellow and green taxis have to pay .75 cents per trip for rides that begin, end, or pass through the CRZ. The cost is passed along to the riding public. The added expense for riders will likely have an impact on the volume of work that drivers receive on a daily basis.
Vehicle Requirements and Inspections
There are several vehicle requirements governed by the TLC for Uber and Lyft drivers. First, the vehicle must be a 2008 or newer model with an approved TLC inspection. The vehicle must have four doors and 5-8 seats, including the driver’s seat. Under the TLC, the vehicle must have either a New York or New Jersey plate. Lastly, the vehicle must not be on the list of ineligible subcompact vehicles.
Vehicles must be inspected at least once every 4 months at a DMV inspection facility. Drivers must independently schedule and complete this state requirement. Once the inspection is completed, drivers receive an updated inspection sticker, which is then registered with the ride-sharing app. Failure to comply with inspection requirements may result in fines and penalties from the TLC, including the forfeiture of your TLC license.
Speak With A Transportation Lawyer Today
New York City’s strict requirements under the TLC can be daunting for workers who drive for ride-sharing apps like Uber and Lyft. It is important to abide by the city and state’s regulations for licensing yourself as a worker as well as your vehicle. For a successful process in becoming and continuing to be an Uber or Lyft driver, it is essential to meet with an experienced transportation attorney.
Contribution to this blog by Michael Touma.
