NEW YORK (1010 WINS) — Uber sued New York City on Friday in an attempt to block the city’s attempt to raise the minimum wages of ride-share drivers.
The Taxi and Limousine Commission approved the first increase to metered fares since 2012 in November, which will also impact the rates that ride-share drivers are paid.
The city estimated that, once the new rules take effect Dec. 19, Uber and Lyft driver pay rates will increase by 7% per minute and 24% per mile. The TLC said a 30-minute, 7.5 mile trip would require a minimum payment of $27.15 for the driver.
Uber sued in a Manhattan Supreme Court, asking a judge to intervene in the pay raise which it claims will “irreparably damage Uber’s reputation, impair goodwill, and risk permanent loss of business and customers.”
Taxi & Limousine Commissioner David Do told Bloomberg the agency plans to fight the lawsuit.
“New York City leads the nation in protecting drivers, and this important rule reflects that reality,” he said. “We are confident that we are well within our legal authority in implementing this important rule, and we are vigorously fighting this lawsuit.”
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