N.Y. taxi company will pay $1.4M in restitution to drivers

NEW YORK (Legal Newsline) - New York Attorney General Eric Schneiderman announced on Tuesday that a New York taxicab company will pay $1,387,500 in restitution to drivers who were allegedly charged illegally by the company.

As part of a separate agreement with the Taxi and Limousine Commission (TLC), Yellow Cab SLS Jet Management Corp. will pay an additional $125,000 plus $25,000 for the cost of monitoring compliance. SLS Jet must also pay $125,000 in penalties to Schneiderman's office. The company will pay a total of $1.6 million in restitution and fines as part of the two agreements.

SLS Jet allegedly violated the TLC's lease cap rules by charging fees to drivers who failed to pre-pay for shifts, even though the company prohibited drivers from pre-paying. SLS Jet allegedly claimed the fees were charged because drivers leased hybrid taxicabs, which is a type of fee that is not permitted under the TLC's rules.

“Every worker in New York deserves an honest day's pay for an honest day's work, and taxicab drivers are no exception," Schneiderman said. “With most cabbies already struggling to make ends meet, our agreement will put money back in their pockets and prevent this company from cheating drivers out of their hard-earned wages. Working with (TLC) Commissioner (Meera) Joshi and the TLC, we will continue to vigorously enforce lease cap rules and ensure that all taxi companies follow the law and respect drivers’ rights."

Under the terms of the agreements, SLS Jet must pay $1.6 million and take steps to ensure future compliance with state law.