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.
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October 23
Employers increasingly shift health care costs onto workers and NYC proposes placing restrictions on fully automated customer service.
October 22
SCOTUS declines Wilcox appeal; Penn State research assistants win bargaining rights; SEIU sued over military leave firing.
October 21
DOL withdraws tipped-worker rule; Instacart settles hiring-bias claims; Phillips 66 locks out New Jersey refinery workers.
October 20
Korean unions oppose labor exemption bill; Portland city workers prepare for strike; UPenn grad student union looks to dismiss university filing
October 19
FDA reverses course on policy prohibiting off-duty union activity; FAA and NATCA reach deal to secure pay increase for air traffic controllers.
October 18
Federal judge again halts cancellation of the Bureau of Prisons’ CBA; tabletop gaming workers face roadblocks in union recognition.