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Unpaid Wages for Taxi Cab Drivers

As a taxi cab driver you may have a claim for unpaid wages and penalty damages.  Cab companies may violate federal wage and hour laws in one of two ways:

1) Failure to pay employee drivers at least the minimum hourly wage: Employees must be paid at least $7.25 for all hours worked during each shift.  Many drivers do not make enough in fares and tips to meet this requirement.

Furthermore, if your employer does not keep a record of your tips, these tips do not count toward the calculation of your hourly wage.  For example:

  • Driver works a 10-hour shift and earns $40.00 in fares and $30.00 in tips.  Because Driver’s tips are not tracked, he or she only made $4.00/hour during the shift.  The employer has violated federal and state law by allowing Driver to work for less than the minimum wage.  Driver is owed $3.25 per hour worked, plus potential penalty damages.

2) Misclassification of drivers as independent contractors: Many cab companies classify their drivers as independent contractors to avoid providing the protections that employees receive, including the minimum wage.

The law states that drivers should be classified as employees if they are economically dependent upon the cab company to earn a living.  Several factors indicate an employee status for most taxi cab drivers:

  • Drivers typically do not own the taxi cab or dispatch equipment;
  • Drivers do not determine the fares charged; and
  • Many drivers depend on dispatch calls for customers.

Contact attorney Breanne L. Snapp for a free, confidential consultation or click here to chat with one of our online representatives.