Adi Kamdar is a student at Harvard Law School.
Yesterday, a New York Assembly Member and the Independent Drivers Guild (IDG) called for an investigation into ride-hailing company Lyft for allegedly cheating drivers out of certain wages. They claim the company is deducting New York State sales taxes and a “Black Car Fund” surcharge on interstate rides, even though they are only supposed to be applied to rides that both begin and end within the state. When drivers confronted Lyft about the mistaken charges, the company claimed they were other administrative costs, not taxes—even though they were the same exact rates as the actual taxes.
Lyft denies the charges, according to the Washington Post, claiming that it is completely upfront with drivers about what commissions and fees apply.
The letter was penned by Assembly Member Robert Rodriguez, who represents areas of East Harlem and Randalls and Wards Islands. The IDG is an affiliate of the Machinists Union and advocates for ride-hailing drivers in New York City. IDG had a controversial start: it serves as a critical outlet for drivers and is recognized by companies like Uber, who have agreed to meet with the group every month; however, it is partially funded by Uber, and part of the deal involved a promise from the Machinists Union to refrain from attempting to unionize the drivers for five years. As one piece highlights, IDG has taken full advantage of this deal—largely to the benefit of its member-drivers.
Though their press release highlights instances of Lyft’s overcharging, they also call for the state to investigate similar companies—e.g., Uber and Juno—for the same misdeeds. The action comes at the heels of last week’s revelation that Uber had been underpaying its New York drivers over two-and-a-half years, taking a cut of commission before taxes and fees, instead of after.
Daily News & Commentary
Start your day with our roundup of the latest labor developments. See all
April 3
NLRB says Amazon failed to bargain with union; Harvard graduate workers authorize strike, and states move to preempt local employment law.
April 2
Sheridan, Colorado educators go on strike; Maryland graduate student workers are one step closer to collective bargaining rights.
April 1
DOL proposes 401(k) rule; Starbucks investors reelect controversial board members; Washington passes workplace immigration warning requirement.
March 31
In today’s news and commentary, the Supreme Court hears a case about Federal Court jurisdiction over arbitration, a UPS heat inspection lawsuit against OSHA is dismissed, and federal worker unions and NGOs call on the EPA to cease laying off its environmental justice staffers. A majority of Supreme Court justices signaled support for allowing federal […]
March 30
Trump orders payment to TSA agents; NYC doormen look to authorize a strike; and KPMG positions for mass layoffs.
March 29
The Department of Veterans Affairs re-terminates its collective bargaining agreement despite a preliminary injunction, and the Federal Labor Relations Authority announces new rules increasing the influence of political appointees over federal labor relations.