All High-Volume For-Hire Services (Uber, Lyft) are subject to TLC’s new driver pay rules. For more information visit High-Volume For-Hire Services. These rules establish a minimum per-trip payment to drivers; they do not establish a minimum wage or set the exact driver payment or passenger fare.
Why do these rules only apply to the High-Volume For-Hire Services?
The rules focus on the companies with the largest market share of trips. High-Volume For-Hire Services are responsible for more than 75 percent of daily FHV trips.
What is utilization and why is it included in the payment formula?
Utilization refers to the percentage of a driver’s on-duty time that is spent with a passenger in their vehicle. The per-minute and per-mile rates in the formula are adjusted based on how frequently companies send trips to drivers while they are available to work. TLC will assess utilization every six months and adjust the rates accordingly.
Does increased utilization disincentivize drivers from taking breaks?
If a driver takes a break and is not available for a dispatch, that time will not count toward a company’s utilization rate.
How will TLC monitor compliance? What data will be required from bases?
TLC will audit trip records on a regular basis to ensure compliance. Companies subject to these rules will be required to submit data on driver pay, passenger fares, driver working time, and trip distance. The companies will also be required to provide detailed receipts to drivers so that drivers can determine whether they were paid at least the minimum amount required by this rule. More information can be found on FHV Trip Record Submission.