Catherwood LibraryILR School

A New York City limousine corporation has agreed to a $108,000 settlement with its former drivers for back wages that it denied them following its post-September 11 closing. Although it continued to collect payments from customers for runs completed prior to its dissolution, the company claimed it could not afford to pay the drivers for these runs---until an investigation and threatened lawsuit by New York State Attorney General Eliot Spitzer convinced the company's owners to settle. The agreement could have a major impact on New York State's taxi and limousine industry, as until now livery drivers have often been treated as independent contractors---not as employees entitled to back pay awards and other protections under wage laws.