NYC pays $140M to TLC drivers in lawsuit settlement

New York City has settled a lawsuit involving Taxi and Limousine Commission (TLC) drivers for $140 million. This settlement will provide back pay to nearly 20,000 drivers whose licenses were improperly suspended if they were arrested. The lawsuit began in 2006 when taxi driver Jonathan Nnebe challenged the TLC's practice of suspending licenses after an arrest, before any trial. The policy meant many drivers could not work while awaiting their court cases. In 2019, a federal appeals court determined that the TLC's hearings did not allow for a fair chance to appeal these suspensions. Over the years, the TLC changed its policies, and in 2023, a jury awarded back pay to several affected drivers in a test trial. The recent settlement will provide varying amounts of back pay. Drivers suspended for less than 26 days can receive $700. Those with longer suspensions may get more, with the highest payouts going to drivers suspended for over 390 days, eligible for $36,000. Bhairavi Desai, head of the New York Taxi Workers Alliance, said the settlement brings overdue justice and could be life-changing for many drivers. Nicholas Paolucci, a spokesman for the NYC Law Department, described the settlement as a fair resolution that also reflects the city's commitment to the rights of taxi drivers.