Lyft Will Now Have To Comply With Minimum-Wage Laws

The ride-hailing company Lyft has lost its lawsuit against New York City to exempt itself from local minimum wage laws. Lyft argued that its drivers are independent contractors, not employees, and the company should, therefore, be exempt from paying at least $17.22 an hour, which is the minimum wage in the city. Lyft’s competitors, Uber and Juno, also filed suit.

Judge Andrea Masley dismissed the company’s arguments, saying Lyft would have to abide by New York City’s minimum wage law. Drivers for ride-hailing services, who have been advocating for better wages and working conditions, celebrated the ruling.

“The judge’s message today is clear. If ride-hail companies want to operate in New York City, they need to pay drivers fairly and follow our minimum wage laws. This is a proud day for drivers who organized with the Guild for years, taking on Silicon Valley behemoths, to win this historic pay protection,” said Independent Drivers Guild founder Jim Conigliaro Jr.

Lyft said the ruling stifles competition among ride-sharing companies and hurts both drivers and consumers.

“[This] will diminish competition that benefits drivers and riders,” the company told Business Insider. “We will continue fighting to provide the best experience for drivers and riders in New York City.”