Judge Nixes NY Surcharge On For-Hire Drivers' Non-Cash Tips

By Linda Chiem (October 23, 2020, 6:22 PM EDT) -- A New York injury compensation fund is improperly collecting a 2.5% surcharge on non-cash tips to black car and for-hire drivers in the Empire State, a federal judge ruled Friday, handing a win to consumers alleging it's an unjust "tax on tip."

U.S. District Judge Philip M. Halpern granted a cross-motion for summary judgment from plaintiff Joseph Kasiotis in a certified consumer class action, ordering the New York Black Car Operators' Injury Compensation Fund Inc. to "cease and desist from imposing and collecting the 2.5% surcharge on non-cash tips" that passengers give to black car and for-hire drivers.

The state-created Black...

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