NYC settles with TLC cabdrivers for $140M in back pay in longrunning lawsuit
Mar 17, 2025
A long-running federal suit seeking back pay for Taxi and Limousine Commission drivers whose TLC licenses were unconstitutionally suspended if they got arrested has been settled, with the city agreeing to pay out a total of $140 million to nearly 20,000 drivers.
The settlement, reached over the week
end, marks the conclusion of a legal labyrinth that began in 2006 when taxi driver Jonathan Nnebe sued the TLC for summarily suspending his license following an arrest.
The suit grew to include thousands of drivers who had their TLC licenses revoked immediately after an arrest prior to any trial — part of a city policy that left them unable to work while their case was pending.
A federal appeals court ruled in 2019 that the TLC’s post-suspension hearings offered no real possibility of appeal — finding that in every instance the court reviewed, the TLC failed to lift a suspension.
The TLC changed its policies in the intervening years, and a jury awarded back pay to 10 of the affected drivers in 2023, part of a so-called “test trial.”
New York City taxis are seen parked on 37th St. and 11th Ave. in Manhattan in this file photo. (Luiz C. Ribeiro for New York Daily News)
This weekend’s settlement is expected to award back pay to nearly 20,000 eligible drivers, based on the length of their suspension.
At the low end, drivers who were suspended for fewer than 26 days will be eligible for $700 from the city. Drivers suspended for greater periods are entitled to larger payouts. Under the terms of the settlement, drivers in the highest tier — those suspended under the old TLC policy for more than 390 days — are eligible for $36,000 in back pay.
“The justice in the case is long overdue,” said Bhairavi Desai, head of the New York Taxi Workers Alliance which was a party to the suit. “It’s meaningful, even life-changing for some of the [drivers].”
Nicholas Paolucci, a spokesman for the NYC Law Department, said Monday that the settlement was a “fair resolution” for the drivers and “in the best interest of the city.”
“In 2022, TLC amended its processes, which have been upheld as constitutional and demonstrate the agency’s commitment to protecting the rights and fair treatment of taxi drivers,” he added. ...read more read less