The IDG is hosting a workshop to help member prepare taxes and understand how tax law applies to rideshare drivers. The seminar will equip you with the knowledge you need to save money on taxes — from how to best track costs and deduct expenses, to paying estimated taxes and using tax-advantaged savings accounts. Space is limited, so reserve your spot today.
More than 15,000 Drivers Sign Petition Calling for City to Close the Minimum Wage Loophole, Raise Pay and End Price Gouging
New York, NY — Today, the Independent Drivers Guild (IDG) is formally petitioning New York City to enact a livable minimum wage for app-based for-hire vehicle drivers, which would increase pay rates by 37 percent, and to prohibit price gouging in the industry, by capping rider app fees at 20 percent. The IDG, a Machinists Union affiliate which represents and advocates for more than 60,000 of these drivers, submitted the proposed rule today to the city’s Taxi and Limousine Commission (TLC), the agency responsible for licensing and regulating New York City’s taxis and for-hire vehicles. The IDG’s petition advocating for the proposal has garnered support from more than 15,000 signers. The IDG will continue its campaign for these pay protections by launching calls and emails to city officials as well as promoting the cause with flyers and ads.
Recently, MIT researchers found that a significant portion of Uber and Lyft Drivers make less than minimum wage after expenses. Even in New York City, where nine in ten Drivers drive as their household’s main source of income, IDG survey data shows that many Drivers make less than minimum wage after expenses.
“After years of pay cuts and exploitation, New York City’s ride-hail drivers can’t make ends meet and many are making less than minimum wage after expenses. New York has a long history of standing up for working families and must not allow these apps to violate our values. We are calling on the city to close this minimum wage loophole and enact a livable minimum pay rate for app-based drivers. We cannot allow multi-billion dollar corporations to profit off the labor of New York workers without paying them a fair rate,” said IDG founder Jim Conigliaro, Jr.
“We are making much less than we were just a few years ago — and companies like Uber and Lyft are pocketing more. To try to make up the difference, drivers are forced to work longer and longer hours, but we are still unable to make ends meet,” said app-based driver and IDG member Aziz Bah. “I am an immigrant from Senegal supporting my family, including two children. I came to this country to work hard and make a better life for my family, but now it seems like the promise and protections America is known for simply don’t apply to us.”
The city is required to respond to rule petitions within sixty days, either agreeing to grant the petition and initiate rulemaking by a specific date or denying the request. While the TLC enforces certain protections for driver pay and to prevent consumer price gouging in the taxi industry, there have been no such protections in the app-based for hire vehicle industry.
Last year, IDG members petitioned for and won a New York City law and a TLC rule which forced Uber and Via to add a tipping option to their apps. In that petition, the IDG noted that further protections were needed to ensure drivers could maintain a dignified living. The Commission responded in agreement, stating “we agree with your position that rules governing tipping are not a substitute for a regulatory scheme that ensures that Drivers earn a livable wage.” Guild members and the TLC have had ongoing discussions on the need for pay protection rules since shortly after the IDG’s launch in 2016 and continuing with the issuance of the IDG’s detailed proposal in November 2017.
A 2017 Independent Drivers Guild (IDG) survey of New York City Drivers found that:
73% of workers who had been in the industry for at least a year reported their financial well being was worse now than had been previously.
73% of Drivers worked more than 10 hours on their most recent shift, with Drivers reporting a median shift of 11 hours and a mean shift of 11.5 hours.
85% of Drivers work at least 30 hours per week and nearly two thirds drive at least 45 hours per week.
56% reported being paid less than $150 before business expenses on their most recent shift.
Workers who lease or rent their vehicle report mean annual expenses of $35,464, and a median of $31,200.
Workers who own their vehicle or have a loan had a mean annual cost of $30,056, and a median of $21,424.
89% reported that being a For-Hire Vehicle (FHV) worker was their main source of income.
57% identified their household income as less than $50,000/year. 22% of respondents reported household earnings of less than $30,000 per year.
56% indicated they care for a dependent under the age of 18.
The IDG proposed rule includes:
1) A minimum pay rate that would raise wages by 37 percent for New York City app based drivers. This rate would apply across all platforms including Uber, Lyft, Juno, and Via.
According to a 2017 survey, the average work day for drivers is more than 11 hours, which is 37 percent above 8 hours: the basic right of a maximum work day. The Guild proposed a minimum pay scale based on a 37 percent increase over 2017 rates to promote safe driving and return driver compensation to be nearer the rates offered in the past. The Guild proposal also includes a premium pay rate for drivers of Wheelchair Accessible Vehicles to incentivize the transition to such vehicles and to offset the increased costs.
Here is a side by side comparison of a sample five mile, thirty minute ride in New York City in 2013, today and under the IDG’s proposal:
|
UberX |
Driver Pay |
Passenger Fare* |
|
2013 |
$20.25 |
$28.50 |
|
2018 |
$14.68 |
Varies** |
|
IDG Proposal |
$20.11 |
$27.42 |
*Includes taxes and company fees
**Passenger fare is no longer bound to actual mileage or minutes traveled.
2) Prohibit price gouging. Currently, apps can charge passengers more than double what a worker is paid, and the IDG’s report has examples of just that. The IDG’s proposed rule would prohibit Uber, Lyft and other companies from charging passengers more than 20 percent over what the worker is paid. This would prevent price gouging and return commissions to the rates riders and drivers agreed to previously.
3) Return trip to New York City pay (known in the industry as “deadhead pay”)—drivers must be paid for the trip back to New York City while no passenger is in the car. Failure to pay drivers for return trips is unfair and costly to workers and puts workers’ compensation insurance and other insurance coverage in jeopardy.
The IDG’s rule petition comes as New York lawmakers are considering numerous proposals to increase taxes and fees on the ride-hail industry in attempt to fund public transit, reduce congestion and update regulations. The IDG rule would prevent apps from passing those taxes and fees on to already struggling drivers, incentivize workers to operate wheelchair accessible vehicles, and reduce driver’s time on the road which would reduce congestion.
The IDG is also calling on New York lawmakers to limit the licensing of new for-hire vehicle drivers to address the glut of drivers, which has outpaced demand, led to an increase in unpaid down time, and contributed to congestion concerns. Limiting the number of drivers in a way that maintains quick response times but minimizes unpaid down time would allow existing drivers a better opportunity to make a living and right-size the fleet. The Guild opposes proposals to cap the number of for-hire vehicles because such a cap would cause vehicle and operation costs to skyrocket for workers.
In addition, the IDG is working to ensure members are protected by basic benefits. While the Guild opposes any new taxes that could further harm its members, if state lawmakers insist on a new rider surcharge, the Guild is demanding that it provide for a benefits fund for workers. Such a fund would give drivers access to benefits that would protect the public health and make our streets safer, such as paid sick leave, health, or vision plans.
“New York is positioned to lead the country and create a national model for fair working conditions for contractors, but there are only so many surcharges that can be put on the shoulders of our members and be supported. Any new surcharge must provide benefits to workers,” said Ryan Price, IDG’s Executive Director.
Media Contact: press@drivingguild.org
The Independent Drivers Guild is an affiliate of the International Association of Machinists and Aerospace Workers and represents and advocates for more than 60,000 app-based drivers in New York City.
The petition linked below was submitted to TLC Commissioner Meera Joshi on March 20, 2018.
It is supported by over 15,000 FHV drivers and outlines our demands for crucial protections including a pay raise and extra pay for driving outside of NYC.
By Jim Conigliaro, Jr.
We all want the best for our city, from public transit improvements to reduced congestion, but the financial burden cannot be allowed to fall on those who can least afford it. Uber and Lyft drivers are hardworking men and women who are just trying to help their families climb the economic ladder, but are being exploited by an industry run amok.
Rather than allow these workers to be made scapegoats for New York’s funding and traffic woes, New York must recognize that they are falling through the holes in our safety net—and act to protect them.
The New York Immigration Coalition is hosting a Know Your Rights Workshop at the IDG office this Tuesday, March 13 at 7:00 PM.
Join our workshop to:
On behalf of the Independent Drivers Guild (IDG), a Machinists Union affiliate that represents the 60,000 New York City based For-Hire Vehicle (FHV) drivers and their families, I am writing with regard to the first For-Hire Vehicle Committee meeting on Taxi and Limousine Commission (TLC) Enforcement practices.
Our members are the so-called “independent contractors” that work for app-based companies such as Uber, Lyft, Juno, and Via among others. Our drivers are immigrants representing 190 countries fighting for the American dream, they are young entrepreneurs, parents, and seniors – they are the working poor.
The backbone of every issue in this industry is that For-Hire Vehicle workers are struggling more today than at any point in the history of the industry. Workers are killing themselves on your stoop to try to get that point across.
As the recent tragic deaths of Doug Schifter and Danilo Corporan Castillo clearly demonstrate, the growing economic hardship of FHV drivers is something that cannot be ignored and must be addressed whenever discussing this industry. A widely held misconception is that app-based drivers do well, but this can’t be further from the truth. While it is true that companies like Uber, Lyft and their employees do very well, app-based drivers can barely make ends meet and support their families. After years of pay cuts and systemic wage theft, most full-time drivers earn less than minimum wage after expenses. Drivers are desperately suffocating under the weight of mounting expenses. The median hourly wage for an app-based driver is about $12 per hour – less than the NYS minimum wage. While enforcement is a huge and emotionally tolling expense on workers in this industry, it’s essential that we raise the floor.
After the video of a TLC officer choking a driver was released (http://idg.ms/TLCEnforcementChoke) we disseminated a survey in an effort to encourage our members to report any similar acts of violence from officers to us, so we could in turn report those to the Commission on Human Rights. However, when responding to the question “Have you ever experienced an abuse of power by TLC police or the NYPD? What was your experience?” the vast majority of the 177 responses were about the economic hardship TLC enforcement imposed. Here are a few of the responses:
“I have had experience with TLC Police. I check my vehicle everyday before I start driving. Apparently one (only one of the bulbs in my braked light went out, I was given two summonses (one for $50.00, and one for $250) I work two days to make that kind of money and for one bulb had two hefty tickets. I went down two TLC and even though I explained my circumstance I was sent a decision in the mail it read “I did not make representation and I did not see a judge” (not true) and I paid the fine because I could not lose another day’s pay to attend court.” – Manjit
“I have experienced an abuse of power by the TLC police. On June 28, 2017, I was pulled over by the TLC police while I had a passenger in the vehicle. They took my drivers license and after 15 minutes they came back to me and told me to come out of the car. I asked why and they insisted that I step out of the vehicle. They handcuffed me with the passenger still in my car. When she asked what’s going on, she was told to call another Uber. I was taken to the precinct, fingerprinted and arrested for a suspended license. I was then transported to Manhattan Central Booking and while there I saw a medical professional that checked my sugar level. I am a diabetic; the professional instructed the police that I must go to the hospital because my glucose level was extremely high. I was taken to Presbyterian Hospital for observation. The doctor told them that I was ok and was taken back to central booking. I spent the night in jail. At approximately 4pm an officer came to my cell and told me that I was free to go and all charges were dropped. The district attorney dropped all charges because my license was NOT suspended.
I have documents from this incident and a letter from the District Attorney that cleared all charges. I lost 4 days of work time and pay due to this incident. Uber deactivated my account due to the report from the passenger.” – Richard
“El amor que sentia por esta ciudad se me ha convertido en un tremendo miedo y muho panico con tantas jodias senales no doble a la isquierda, no le veo el motivo, que no doble a la derecha tampoco veo ningun motivo en algunos lugares ya todo esto de ser driver de taxi dan ganas de llorar y rendirce. A veces pienso todos los dias que esto esta peor que los dictadores.” – Dalia
“When you are immigrant, you went to court, the judge find you guilty because you are immigrant and he cannot understand. He refuses to allow you to explain a full detail of what happen. He made grimace with his face. Shut you off and said you guilty without explanation. You can see 4 traffic agents plus police officer, not directing traffic but waiting to give you ticket because you will end up blocking the street and the box. Driver unable to see in front of them. The traffic agent and the cops saw the street is full, cars kept coming instead of signaling drivers to stop. Taxi drivers thought the traffic is flowing. Taxi Drivers spent more time on the road than any other drivers, we are targeting. These days we make less and less of what we used to make 10 or 15 years ago but the high cost of TLC tickets and regular ones stay the same.” – Eugene
Right now, the core focus of the Independent Drivers Guild is to win a 37% raise and pay regulations. TLC enforcement abuses and injustices is an issue that requires our full attention and more resources than we currently have available to be properly addressed. Since our inception, we have agreed on and identified some preliminary suggestions the TLC enforcement improvements, but this letter in no way does justice for the justified rage workers experience in their relationship with Taxi and Limousine Commission enforcement, and should not be misconstrued as an exhaustive policy letter.
Fines Are Too High, Workers Without Equal Rights
With the steady decrease in pay in the industry and the increase in cost of living and operational expenses, the fine costs are a risk to public safety. The cost of most summons range from $150 (an entire days pay) to $3,000 (a bit more than pay for a month of working 11 hours per day, 5 days a week after expenses).
Our members are piece workers without a set shift, whose piece rate has only ever decreased, who are in debt as a requirement to work, and whose other expenses remain the same while cost of living increases. So when they are issued an expensive summons, most workers only choice is to work longer shifts, putting the public at risk. It’s no wonder our members reported working a median 11 hour workday.
About half of our members that have health insurance are on medicaid — meaning the state recognizes they live in poverty. The fine schedules must be readjusted to reflect the current economic conditions.
The Criminal Justice Reform Act (CJRA) went into effect on June 13, 2017, but no Taxi and Limousine Commission summons’ can be paid by doing community service—that discrepancy should be amended.
A History of Extortion
Many workers report regularly getting tickets without cause, or being entrapped into hefty fines.
Please note: we don’t use the term entrapment lightly. Before mid-2017, we were regularly receiving desperate reports of workers that had been issued a $2,500 ticket at an airport because a “crippled old man” who couldn’t figure out how to use the Uber app offered to pay the worker cash to get them to their destination. Feeling sorry for the older gentleman, who is being oddly pushy, the worker would accept and be fined in the neighborhood of $3,000. This is roughly an entire month’s net income.
While the current Chief of Enforcement at the Taxi and Limousine Commission has assured us that those practices have changed since, and the peace officers are being instructed to focus enforcement efforts on drivers without Taxi and Commission licensing, to a great extent, the damage has been done. Workers will not trust the intentions of the TLC.
Fix the Built Environment, Before Punishing Workers For ‘Undesirable’ Behavior
Oftentimes when a worker violates a rule, they do so because it’s what the built environment, job requirements, or dispatch companies encourage. Many workers are simply making rational decisions in response to their environmental incentives.
The outdated model to modify a person’s behavior through policies is to punish them for behavior society deems undesirable. B.F. Skinner, a renowned psychologist and behaviorist, is known to be the father of Operant Conditioning. Skinner identified three types of responses or operant that can follow behavior:
In this case, fines and tickets are a punisher, and not a particularly effective one at that.
There are many problems with using punishment as identified by Skinner and other behaviorists, such as:
We see all of those effects in the industry today. As policymakers, you have the ability to change the environment workers experience and can create incentives for desirable behavior. Some suggestions of that shifting mentality in this context may be:
Please note, much of the information in this section was referencing a post on SimplyPsychology by Saul McLeod which describes Operant Conditioning. You may find the original post here: http://idg.ms/OperantConditioning
Insufficient Education Resources
Oftentimes due to liquidity of the labor market in the For-Hire Vehicle industry, workers frequently move from working yellow cab to the black car sector of the industry. Due in part to shoddy education providers and steep language barriers (91% of the industry is an immigrant) the worker may not be knowledgeable of all of the rules of the industry, and be issued a crippling fine without any real recourse.
There are a few policy changes that could help amend the access to education issue:
The IDG has recently been approved to provide the 24-Hour course and intend to use it to encourage workers into enter ongoing remedial English as a Second Language courses. We also have an interest in teaching workers how to avoid being fired from apps, have the necessary skills to protect themselves, and intensive courses on what their rights are when responsibly interacting with enforcement officers. The IDG provides an intensive Defensive Driving and Safety Class where we dive deeply into current laws and policies, and teach skills to stay safe in the industry.
Competition Between OATH And TLC Is Problematic
After a worker is issued a summons, they are sent an extremely intimidating letter in the mail. That letter essentially says ‘If you take your summons to OATH and fight it in court, not only are you probably wasting your time, but you’re going to pay more money.’ That letter is a pre-court settlement offer from the TLC, but it isn’t perceived as a negotiation; it’s perceived as a threat.
While I doubt it’s the intention or motivation of the Taxi and Limousine Commission to pit workers against the industry and the City Government in its entirety — especially for workers that are from countries where government financial exploitation is the norm — this practice makes it seem like they are being forced to pay more to fight a ticket.
From what I understand, the TLC engages in this practice of sending pre-court settlement offers because OATH and TLC compete for Funding. Whichever agency is most effective at getting money from poor immigrant workers gets a bigger cut of the City’s budget. While the agencies compete, the workers are dying.
The New York City Council’s new Committee on For-Hire Vehicles is having its first ever meeting about “Oversight – TLC Enforcement Practices.”
Show up in your IDG Shirt and let us know if you’re coming by filling out the form below:
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Due to workers occasionally messaging us with intent to self-harm, and the recent passing of Doug Schifter, we feel it’s important to post some important resources if you or a loved one are considering self-harm.
Here are a few other resources that could be helpful:
NYC Affirmative Psychotherapy – Rana Shokeh, LMSW
41-51 East 11th St 4th Fl New York, New York 10003 (347) 801-7932
Specialities: Depression, Anxiety, & Racial Identity
Arabic Speaking
Sliding Scale for low income patients
Mind and Body Wellness Medical Center
32-72 Steinway 5th Floor Astoria, New York 11103 (347) 609-7769
420 64th Street Brooklyn, New York 11220 (347) 609-7769
Specialties: Depression, Anxiety, & Relationship Issues
Arabic Speaking Staff
Sliding Scale for low income patients
Social Work Counseling Services, LCC
2924 Hoyt Avenue South Astoria, NY 11102
There are also plenty of resources on www.psychologytoday.com depending on if you have insurance or not.
If you know of any free resources for low income workers, please contact us.
Comment from Independent Drivers Guild founder Jim Conigliaro, Jr.:
We are pleased to see Washington state’s SEIU Local 775 and Uber’s Mr. Khosrowshahi collaborate on principles toward getting workers the benefits they deserve.
In New York, the Independent Drivers Guild has led discussions with city and state officials about the creation of a benefits fund for drivers through company contributions or a surcharge. Such a fund would give drivers access to benefits that would protect the public health, save public spending, and make our streets safer, such as paid sick leave, health or vision plans.
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The Guild is an IAMAW affiliate representing more than 60,000 New York City app-based drivers. We are Uber, Lyft, Via and Juno workers united for a fair for-hire vehicle industry.