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Lyft on Tuesday lost an appeal to fight a city rule that set a minimum wage for New York’s for-hire drivers, new court papers show.
A lower court judge in May 2019 tossed out the ride-hail company’s lawsuit, which sought to overturn a part of the Taxi and Limousine Commission’s rule that Lyft felt gave Uber an unfair advantage — specifically the company-specific utilization rates.
TLC’s rule was meant to ensure that drivers should make an average of $17.22 an hour — or $15 minimum wage after taxes and expenses.
The First Department, Appellate Division upheld the earlier decision finding that the TLC’s rule “has a rational basis and was not unreasonable.”
City Law Department spokesman Nicholas Paolucci said, “We’re pleased with this ruling – it will help hardworking drivers during this very difficult time.”
Lyft said in a statement: “The rule has already resulted in 10,000 fewer New Yorkers being able to earn on our platform. We will continue fighting for drivers and are currently exploring all our options.”
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