Uber has filed a lawsuit to block pay increases to its ride-share drivers in New York City.
According to Bloomberg News, the company claims it will be forced to spend an extra $21 million to $23 million each month because of the pay raises. Uber officials argue they won’t be able to recover those funds unless they pass the cost along to customers through higher fares.
Last month, the New York City Taxi & Limousine Commission set pay increases for Uber and Lyft drivers. Those raises are scheduled to take effect on December 19, a week from Monday. The drivers’ per-minute pay rates will go up by 7%; their per-mile rates will increase by 24%.
Uber is suing the commission, seeking an injunction to declare the raises invalid. A commission member says the city will fight the lawsuit.