A New York State judge on Friday blocked regulators from raising the pay of ride-hail drivers, saying that the Taxi and Limousine Commission had not sufficiently justified the increase.
Uber sued the commission, a New York City agency, last month and argued that the increase, approved in November, was too high and could require the company to spend an additional $21 million to $23 million per month to pay its drivers. Uber argued that to avoid taking on the extra costs, it would have to raise fares by 10 percent, which could drive business away.
Justice Arthur F. Engoron of State Supreme Court in Manhattan agreed with the company’s argument on Friday that the commission had used a faulty methodology to calculate the pay increase, including factors such as last summer’s sharp increase in gas prices, which has since abated. Uber had called the commission’s move a “drastic departure” from past practices.
Justice Engoron is expected to issue a written ruling next week. A spokesman for the commission said that it would decide whether to appeal after studying the decision.