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Pay Up: NYC Cracks Down on Uber and Lyft Driver Lockouts

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In a decisive shift that rewrites the playbook for app-based driving in New York City, the Taxi & Limousine Commission (TLC) has approved a 5% increase in minimum pay for Uber and Lyft drivers, along with fresh curbs on sudden “lockouts” from platforms. These new rules—set to take effect August 1—aim to balance rising costs with fairer driver treatment, reshaping how companies manage access and pay. With pay per trip now set to reach $29.07, this measured yet bold move stirs the city’s ride-hail economy with quiet but firm authority.

🟩 STORY HIGHLIGHTS:

  • Minimum pay increased by 5%: New standard trip rate raised to $29.07.

  • App lockout restrictions introduced: 72-hour notice required; drivers allowed up to 16 hours of platform access per shift.

  • **NYTWA claims lockouts caused up to 25% income loss for drivers in 2024.

  • Economist recommended 6.1% pay raise, but TLC settled on 5%.

  • Future pay adjustments to follow rulemaking process instead of automatic annual hikes.

In a decision expected to reshape the working conditions of thousands of ride-hailing drivers in New York City, the Taxi & Limousine Commission (TLC) on Wednesday unanimously approved a series of rule changes aimed at improving earnings and protecting job access for drivers working under high-volume for-hire vehicle services such as Uber and Lyft. The revised policies include a 5% increase in the minimum driver pay standard and new restrictions on app-based “lockouts” that have long been criticized by driver advocacy groups.

Effective August 1, the updated pay formula will raise earnings for a typical 30-minute, 7.5-mile ride to $29.07. This marks a modest but symbolic improvement in driver compensation, reflecting a 5% increase from 2024 rates and a 26% rise since the city first implemented a structured pay system for app-based drivers in 2019.

The TLC’s move follows over a year of sustained organizing and policy engagement from the New York Taxi Workers Alliance (NYTWA), which accused ride-hailing platforms of using lockouts to suppress earnings by manipulating utilization rates — a core metric used by the city to determine per-trip driver pay. According to NYTWA, these lockouts often occurred mid-shift, leaving drivers unable to earn income and effectively stranded while logged out of the platforms they rely on for work.

While the dollar increase may appear incremental, advocates emphasized the deeper significance of the regulatory shift. Speaking after the vote, NYTWA Executive Director Bhairavi Desai said the new rules represent a crucial win in the broader fight for driver protections:

“The new Taxi & Limousine Commission rules are a victory for Uber and Lyft driver members of NYTWA to end lockouts and protect driver incomes,” she said.
“Lockouts are an attack on driver pay and driver dignity.”

NYTWA has long argued that app-based companies intentionally restricted driver access during off-peak hours or in lower-demand areas in order to maintain artificially high utilization rates. These inflated figures, in turn, enabled companies to minimize the wages they were required to pay under the city’s formula. The union claims that many drivers saw their earnings drop by as much as 25% in 2024 due to such tactics.

In response to these allegations, the TLC adopted a new set of regulations requiring companies to provide at least 72 hours’ notice before limiting a driver’s ability to log into the app. Additionally, once a driver begins a shift, the rules now require platforms to permit continuous access for up to 16 hours, with limited exceptions.

During the June 25 meeting, TLC Chair David Do described the changes as an important step toward ensuring that drivers have uninterrupted opportunities to work and earn.

“These proposed rules not only go a long way towards closing this loophole and providing further lockout protections for drivers,” he said,
“but they also provide a sensible pay increase based on inflation and increased expenses.”

Do further acknowledged the frustration many drivers faced under the previous system, where access to their livelihood could be revoked mid-shift without warning, disrupting their ability to earn.

The TLC had enlisted Dr. James Parrott, an economist at the Center for New York City Affairs, to assess the true costs faced by drivers and recommend adjustments. In a December 2024 report, Dr. Parrott proposed a 6.1% increase in per-mile rates, citing higher operating costs — particularly for electric vehicles and vehicle rentals. His research was based on survey responses from thousands of drivers and market data on vehicle expenses.

However, both Uber and Lyft pushed back during the public comment phase in February, raising questions about the reliability of survey data and assumptions around vehicle depreciation. Following the pushback, the TLC and Dr. Parrott conducted a supplemental review, incorporating trade-in values from Kelley Blue Book to adjust the cost model, which ultimately lowered the final raise to 5%.

In a statement to the press, Lyft expressed cautious relief that Parrott’s full recommendation was not adopted:

“While these changes are a step in the right direction,” a Lyft spokesperson said,
“we still have concerns that the underlying pay formula will still deprive drivers of earning opportunities, drive up prices for riders, and reduce ride availability, which isn’t good for anyone – especially the drivers who depend on steady demand to make a living.”

Uber, on the other hand, welcomed aspects of the rule changes, particularly the TLC’s decision to abandon automatic annual adjustments based on utilization rates. According to the company, this move represents the first official recognition that the existing system — which incentivized companies to restrict access in order to maintain utilization metrics — was inherently flawed.

“This shift marks the city’s first formal acknowledgment that time and distance-based utilization should be treated differently,” said Uber spokesperson Freddi Goldstein.

Uber has consistently criticized the current pay formula, arguing it forced platforms to make difficult decisions around driver access in order to remain compliant with utilization-driven wage standards. While the company did not directly comment on the new driver protections against lockouts, it emphasized that the revised model offers a more stable framework going forward.

Looking ahead, the TLC clarified that future pay increases will no longer follow an automatic schedule. Instead, rate changes will be considered through a formal rulemaking process, allowing the Commission to weigh additional factors such as changes in citywide travel trends, inflation, vehicle costs, and shifts in company practices — including the use of waitlists and access restrictions.

In its final statement, the Commission described the new approach as one that offers greater transparency and flexibility, better suited to the dynamic nature of the for-hire vehicle industry.

For the thousands of Uber and Lyft drivers navigating New York City streets each day, the new rules may offer a measure of predictability in an otherwise uncertain job environment — and, perhaps more importantly, a sense that their voices are beginning to shape the policies that govern their labor.

The New York City Taxi & Limousine Commission’s latest decision signals a pivotal moment in the evolving dynamics of app-based transportation. By introducing a structured pay increase and decisive action against exploitative lockout practices, the city has taken a firm step toward reinforcing fairness and stability in the gig economy. While platforms like Uber and Lyft remain cautious, the new rules highlight a growing insistence on accountability and transparency. For thousands of drivers navigating the city’s streets, these reforms offer not only improved earnings but also renewed recognition of their essential role in urban mobility.

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Wall Street Smoke: NYC Financier Hit for ‘Fake News’ Stock Boost Trick

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In a striking turn of events, Medallion Financial Corp. and its president, Andrew Murstein, have been fined a combined $4 million for secretly planting fake news articles to boost the company’s stock value. The SEC uncovered a carefully crafted campaign of paid online stories posing as real investor opinion, aiming to mask the firm’s falling fortunes amid Uber and Lyft’s rise. With a federal judge calling the evidence strong, the case exposes how digital storytelling was twisted into a tool of illusion, shaking faith in corporate truth-telling and investor trust.

STORY HIGHLIGHTS:

  • Medallion Financial Corp. fined $3 million; president Andrew Murstein fined $1 million

  • SEC uncovered a covert strategy to publish 50+ fake news articles from 2014 to 2017

  • Posts were disguised as investor opinion, edited by Murstein, and not properly disclosed

  • Scheme coincided with declining value of NYC taxi medallions

  • Judge Lewis A. Kaplan called evidence “more than sufficient” for material misrepresentation

  • PR agent Lawrence Meyers fined $100,000 for involvement

  • Medallion Bank’s value was inflated from $166M to $280M within two quarters

  • Company and executives settle without admitting guilt

  • Stock closed at $9.50 following settlement news

In a twist that blends Wall Street ambition with media manipulation, a New York City financier and his firm, Medallion Financial Corp., have landed in legal hot water for an elaborate scheme involving planted online articles meant to influence investor sentiment. The U.S. Securities and Exchange Commission (SEC) has settled with the company and its president, Andrew Murstein, for a total of $4 million after a federal judge found credible evidence of deceptive tactics designed to inflate the company’s valuation during a challenging period marked by the meteoric rise of ride-hailing giants like Uber and Lyft.

A Modern Tale of Corporate Spin:

It was once a symbol of traditional New York success — the yellow taxi medallion, a gleaming license plate of prosperity. But in a changing transportation landscape dominated by app-based ride-hailing services, those medallions lost their luster. For Medallion Financial Corp., whose business revolved around financing these costly permits, the downturn was swift and brutal. And in a desperate bid to preserve shareholder confidence and company image, the firm’s leadership turned to an unconventional — and ultimately unlawful — solution: digital misinformation.

Andrew Murstein, president of the company, stands accused by the SEC of masterminding a covert campaign to sway public opinion and, by extension, Wall Street investors. According to court documents, Murstein hired media strategists to generate more than 50 flattering articles published on respected platforms like HuffPost and Crain’s New York Business, between 2014 and 2017. These articles were not ordinary press releases or transparently sponsored content. Instead, they were masked as genuine, independent analyses written by seemingly unbiased financial commentators.

Behind the scenes, however, the SEC alleges these “news” pieces were heavily edited — sometimes even written — by Murstein himself. They were designed not just to promote Medallion stock but to counter the souring sentiment caused by the disruptive wave brought on by Uber and Lyft, which significantly devalued the very assets Medallion was built upon.

From Valuation to Inflation:

Perhaps more troubling was the accusation of “opinion-shopping.” When one respected valuation firm refused to accept Medallion’s inflated figures amid a rapidly declining taxi industry, Murstein allegedly sought out a more agreeable consultant willing to paint a rosier financial picture. As a result, the perceived value of Medallion Bank’s portfolio leapt to $280 million by the end of 2016 — up from just $166 million two quarters earlier — even as the real-world value of taxi medallions was collapsing.

The SEC’s complaint, originally filed in December 2021, was part of an initiative under the agency’s chair, Gary Gensler, to pursue greater transparency in financial markets. U.S. District Judge Lewis A. Kaplan concluded that there was clear evidence Murstein and the company withheld material facts from investors. Though neither Murstein nor Medallion admitted to wrongdoing, they agreed to pay a combined $4 million to resolve the case.

Settling, But Not Forgetting:

The settlement includes a $3 million penalty from the company and a $1 million personal fine for Murstein. A separate $100,000 fine was levied against Lawrence Meyers, a California-based PR agent who worked closely with Murstein on the article campaign. The settlement, filed on May 29, was first reported by American Banker.

“Our agreement with the SEC puts this nearly decade-old matter behind us and enables us to apply our full focus to continuing to grow the company,” said a Medallion spokesperson. “It removes the distraction, cost, and uncertainty of continued litigation and is in the best interest of the company and our shareholders.”

But critics are skeptical. Some suggest that the SEC’s relatively moderate penalties could reflect changing enforcement priorities. “It does raise concerns if such tactics can be resolved with only monetary settlements,” said a source familiar with the investigation. Others argue the timing of the resolution — occurring after a change in SEC leadership — could indicate a push to clear inherited dockets from prior administrations.

A Legacy Tied to the Streets of New York:

Medallion Financial’s history is deeply entwined with the city’s taxi culture. Founded by Murstein’s father, Leon — a Polish immigrant and former cabbie — the company helped generations of drivers purchase medallions by financing up to two-thirds of the cost. At its peak, the value of a single medallion reached $1 million during the Bloomberg era. But as competition stiffened and demand plummeted, medallion values cratered, leaving many drivers saddled with debt and the company scrambling for footing.

Between 2002 and 2014, Murstein and his father reportedly earned over $42 million. Their spending extended beyond Wall Street; the firm once made headlines for its investments in NASCAR and professional lacrosse, and Murstein even booked rapper Nicki Minaj to perform at his son’s bar mitzvah in 2015 — a moment that gained viral notoriety.

Investor Confidence in a Post-Truth Era:

Medallion’s stock closed at $9.50 on Wednesday, seemingly stabilizing after years of volatility. Yet the episode raises serious questions about the influence of media manipulation in public markets and how companies can use online ecosystems to craft deceptive narratives.

As investors continue to digest the news and weigh the implications, the story of Medallion Financial serves as a cautionary tale — one where ambition, legacy, and the pursuit of image collided with federal securities law in the age of digital spin.

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