Monday, June 1, 2026
  • Contact Us
  • Advertise
  • Privacy Policy
  • Terms of Use
  • Members
  • Sign in
Westfair Communications
  • HOME
    • WESTCHESTER
    • FAIRFIELD
  • E-EDITIONS
    • Business Journal
    • 250 Years of Business & Commerce in America
    • Podcasts
  • MEMBERS
  • BUSINESS LISTS
  • INDUSTRIES
    • Economic Development
    • Real Estate
    • Hudson Valley
    • Courts
    • Banking & Finance
    • Construction
    • Economy
    • Education
    • Health Care
    • Food & Beverage
    • Government
    • Mergers & Acquisitions
    • Nonprofits
    • Retail
    • Technology
    • Home & Design
    • Health & Fitness
    • Travel
    • Lifestyle
  • SMALL BUSINESS
    • Small Business
    • Food & Restaurants
  • EVENTS
    • 2026 C-Suite Awards
    • 2026 Women Innovators
    • 2026 Millennial & Gen Z
    • 2026 Hispanic Innovators
    • Events Calendar
    • Past Events
      • 2026
        • 2026 Doctors of Distinction
        • 2026 40 Under Forty
        • 2026 Real Estate
        • 2026 Women in Power
      • 2025
        • 2025 Hispanic Innovators
        • 2025 Doctors of Distinction
        • 2025 C-Suite Awards
        • 2025 Women Innovators
        • 2025 40 Under Forty
        • 2025 Millennial & Gen Z
        • 2025 Real Estate
      • 2024
        • 2024 Doctors of Distinction
        • 2024 Women Innovators
        • 2024 40 Under 40
        • 2024 Real Estate
        • 2024 Women In Power
      • 2023
        • 2023 Women In Power
        • Milli + Genz
        • Women Innovators
        • Forty Under 40
        • Doctors of Distinction
        • Real Estate
      • 2022
        • 2022 Millennial + GenZ Awards
        • 2022 C-Suite Awards
        • 2022 Doctors of Distinction
        • 2022 THE FUTURE OF REAL ESTATE
        • 2022 FORTY UNDER 40
      • 2021
        • 2021 FORTY UNDER 40 VIRTUAL EVENT
        • 2021 TOP WEALTH ADVISORS Virtual Event
        • 2021 Milli + GenZ Awards
        • 2021 C-SUITE
        • 2021 DOCTORS OF DISTINCTION
  • GOOD THINGS
  • VIDEOS
    • Our Starting Lineup
    • News Videos
  • PARTNERS
  • ADVERTISE
  • SUBSCRIBEACT NOW
    • NEWSLETTERS
    • DIGITAL ACCESS
No Result
View All Result
  • HOME
    • WESTCHESTER
    • FAIRFIELD
  • E-EDITIONS
    • Business Journal
    • 250 Years of Business & Commerce in America
    • Podcasts
  • MEMBERS
  • BUSINESS LISTS
  • INDUSTRIES
    • Economic Development
    • Real Estate
    • Hudson Valley
    • Courts
    • Banking & Finance
    • Construction
    • Economy
    • Education
    • Health Care
    • Food & Beverage
    • Government
    • Mergers & Acquisitions
    • Nonprofits
    • Retail
    • Technology
    • Home & Design
    • Health & Fitness
    • Travel
    • Lifestyle
  • SMALL BUSINESS
    • Small Business
    • Food & Restaurants
  • EVENTS
    • 2026 C-Suite Awards
    • 2026 Women Innovators
    • 2026 Millennial & Gen Z
    • 2026 Hispanic Innovators
    • Events Calendar
    • Past Events
      • 2026
        • 2026 Doctors of Distinction
        • 2026 40 Under Forty
        • 2026 Real Estate
        • 2026 Women in Power
      • 2025
        • 2025 Hispanic Innovators
        • 2025 Doctors of Distinction
        • 2025 C-Suite Awards
        • 2025 Women Innovators
        • 2025 40 Under Forty
        • 2025 Millennial & Gen Z
        • 2025 Real Estate
      • 2024
        • 2024 Doctors of Distinction
        • 2024 Women Innovators
        • 2024 40 Under 40
        • 2024 Real Estate
        • 2024 Women In Power
      • 2023
        • 2023 Women In Power
        • Milli + Genz
        • Women Innovators
        • Forty Under 40
        • Doctors of Distinction
        • Real Estate
      • 2022
        • 2022 Millennial + GenZ Awards
        • 2022 C-Suite Awards
        • 2022 Doctors of Distinction
        • 2022 THE FUTURE OF REAL ESTATE
        • 2022 FORTY UNDER 40
      • 2021
        • 2021 FORTY UNDER 40 VIRTUAL EVENT
        • 2021 TOP WEALTH ADVISORS Virtual Event
        • 2021 Milli + GenZ Awards
        • 2021 C-SUITE
        • 2021 DOCTORS OF DISTINCTION
  • GOOD THINGS
  • VIDEOS
    • Our Starting Lineup
    • News Videos
  • PARTNERS
  • ADVERTISE
  • SUBSCRIBEACT NOW
    • NEWSLETTERS
    • DIGITAL ACCESS
No Result
View All Result
Westfair Communications
No Result
View All Result
Home Courts

NY ‘black car’ operators adding illegal surcharge on tips, claims lawsuit

Bill Heltzel by Bill Heltzel
September 7, 2018
3
Share on LinkedInShare on FacebookShare on Twitter

Drivers for Uber, Lyft and other “black car” services in New York State are tacking on a 2.5 percent surcharge on tips, according to a class action lawsuit filed in federal court arguing the assessment is illegal. 

Joseph Kasiotis, a Bronxville resident who describes himself as a frequent user of livery services, is accusing the Black Car Fund of unjust enrichment.

“New York consumers are being unlawfully ”˜taxed,”™” his complaint stated, “when black car companies impose and collect a mandatory surcharge intended to be calculated on the fare only.”

The lawsuit was initially filed in Westchester Supreme Court and then removed by the Black Car Fund to White Plains federal court on Aug. 1.

The Fund, formally known as the New York Black Car Operators”™ Injury Compensation Fund Inc., denied Kasiotis”™ claims and denied that passengers are entitled to relief.

The state legislature created the Fund in 1999 to provide workers’ compensation benefits to limousine drivers.

The law mandates that for-hire car services that provide most of their rides through contracts and credit cards, and which own no more than half of their cars, join the Fund.

The Fund, a nonprofit organization headquartered on Wall Street, represents about 300 members with more than 70,000 drivers.

Members are required to apply a 2.5 percent surcharge on every trip that originates in the state in order to fund workers’ compensation benefits.

“The 2.5 percent surcharge is paid for by the passenger,” according to the Fund”™s website, “as a part of their full fare.”

Kasiotis claimed that drivers are also applying the assessment to tips that are paid for with credit cards.

The surcharge is required only on payments for “covered services” picking up and dropping off passengers, the complaint stated.

“The very essence of a gratuity is its voluntary nature, unmoored from any legal obligation to make such a payment,” the complaint said. “Indeed, by definition, a gratuity is an expression of appreciation to the driver personally, not payment for the fare.”

Kasiotis attributed the tip surcharge to the growth of ride-hailing services such as Uber, Lyft and Via. Until recently, Uber did not allow drivers to charge or accept tips.

Now Uber policy assures customers, “Tips go directly to drivers; Uber does not charge additional service fees on tips.”

The growth of ride-hailing services such as Uber increased the number of daily transactions exponentially, the complaint stated, creating a “perverse incentive” to impose the surcharge on non-cash tips and generating an “enormous windfall” for the Fund.

Kasiotis is asking the court to stop Fund members from imposing a tip surcharge.

In removing the case to federal court, the Fund”™s attorney said that there is a “reasonable probability” that the amount in controversy will exceed the $5 million threshold for a class action lawsuit.

The Fund is represented by Bradley J. Nash of Schlam Stone & Dolan in Manhattan.

Kasiotis is represented by Jeffrey I. Carton, Robert J. Berg and Myles K. Bartley of Denlea & Carton in White Plains.

This page is available to subscribers. Click here to sign in or get access.

Previous Post

Newmark Group closes on RKF Retail Holdings acquisition

Next Post

C-Suite Awards Event Information

Related Posts

Westconn broadcasting students snag national journalism award
awards

Westconn broadcasting students snag national journalism award

June 1, 2026
Q&A: Relationship expert, TV psychologist Dr. Dale Atkins ventures into children’s books
books

Q&A: Relationship expert, TV psychologist Dr. Dale Atkins ventures into children’s books

June 1, 2026
Zoning change requested for former Walmart location in White Plains
Construction

Zoning change requested for former Walmart location in White Plains

June 1, 2026
Next Post
C-Suite Awards Event Information

C-Suite Awards Event Information

Comments 3

  1. Sarah Adydan says:
    7 years ago

    Thank you for writing this article. I recently noticed that the amount I tipped my Uber driver was more on my CC charge than what I chose as a tip. I contacted them to ask where is was stated in the Terms and Conditions, that they would charge more than the amount I agreed to. There was no definitive answer. Very informative article.

  2. Rhonda says:
    5 years ago

    I rode with a Lyft driver today and noticed that I was charged a black car fund, I live in upstate NY. I don’t feel this is right.

  3. Tamiko says:
    4 years ago

    This is Illegal to charge any Passenger a black car surcharge for aworkers workers comp benefits. When a worker whom works for a company, it is the company responsibility not the passengers. This is definitely a lawsuit.

Subscribe to our newsletter

Lifestyle

  • Exclusives
  • Good Things Happening
  • Food & Restaurants
  • Travel
  • Health & Fitness
  • Home & Design

World News

CNN WIRE — Trump’s anti-media blitz is straight from strongman’s playbook: VIDEO
World News

CNN WIRE — Trump’s latest lies about California elections

by CNN Wire
June 1, 2026
0

By Daniel Dale, CNN (CNN) — President Donald Trump has repeated falsehoods about voting in California in an interview on...

CNN WIRE — Dubai’s tourism woes: VIDEO

CNN WIRE — Dubai’s tourism woes: VIDEO

June 1, 2026
CNN WIRE — Pence receives JFK Profile in Courage Award: VIDEO

U.S. and world news for June 1

June 1, 2026
Report finds high-speed dismantling of democracy in U.S.

CNN WIRE — Trump steps into spotlight after performers bail from his Great American State Fair event

May 31, 2026
U.S. and world news for May 29

U.S. and world news for May 29

May 29, 2026
CNN WIRE — Trump drains U.S. oil reserves faster than Biden did

CNN WIRE — Trump drains U.S. oil reserves faster than Biden did

May 28, 2026
No Result
View All Result

Latest News

Westconn broadcasting students snag national journalism award
awards

Westconn broadcasting students snag national journalism award

by Pamela Brown
June 1, 2026
0

Award-winning Western Connecticut State University media arts and broadcasting students Anthony Garten, left, and Samantha Murray pose...

CNN WIRE — Trump’s anti-media blitz is straight from strongman’s playbook: VIDEO

CNN WIRE — Trump’s latest lies about California elections

June 1, 2026
Q&A: Relationship expert, TV psychologist Dr. Dale Atkins ventures into children’s books

Q&A: Relationship expert, TV psychologist Dr. Dale Atkins ventures into children’s books

June 1, 2026
Zoning change requested for former Walmart location in White Plains

Zoning change requested for former Walmart location in White Plains

June 1, 2026
CNN WIRE — Dubai’s tourism woes: VIDEO

CNN WIRE — Dubai’s tourism woes: VIDEO

June 1, 2026
Logo Westfair Business Journal

Latest News

Westconn broadcasting students snag national journalism award

CNN WIRE — Trump’s latest lies about California elections

Q&A: Relationship expert, TV psychologist Dr. Dale Atkins ventures into children’s books

  • About Us
  • Contact Us
  • Advertise
  • Privacy Policy
  • Terms of Use
  • Sign in

Trending Westchester

Subscribe to our newsletter

© 2024 Westfair Business Publications. All rights reserved. Westfair Communications (Westfair), a privately held publishing firm based in Mount Kisco, N.Y., publishes the Westchester County Business Journal in New York state and the Fairfield County Business Journal in Connecticut.

No Result
View All Result
  • HOME
    • WESTCHESTER
    • FAIRFIELD
  • E-EDITIONS
    • Business Journal
    • 250 Years of Business & Commerce in America
    • Podcasts
  • MEMBERS
  • BUSINESS LISTS
  • INDUSTRIES
    • Economic Development
    • Real Estate
    • Hudson Valley
    • Courts
    • Banking & Finance
    • Construction
    • Economy
    • Education
    • Health Care
    • Food & Beverage
    • Government
    • Mergers & Acquisitions
    • Nonprofits
    • Retail
    • Technology
    • Home & Design
    • Health & Fitness
    • Travel
    • Lifestyle
  • SMALL BUSINESS
    • Small Business
    • Food & Restaurants
  • EVENTS
    • 2026 C-Suite Awards
    • 2026 Women Innovators
    • 2026 Millennial & Gen Z
    • 2026 Hispanic Innovators
    • Events Calendar
    • Past Events
      • 2026
      • 2025
      • 2024
      • 2023
      • 2022
      • 2021
  • GOOD THINGS
  • VIDEOS
    • Our Starting Lineup
    • News Videos
  • PARTNERS
  • ADVERTISE
  • SUBSCRIBE
    • NEWSLETTERS
    • DIGITAL ACCESS

© 2024 Westfair Business Publications. All rights reserved. Westfair Communications (Westfair), a privately held publishing firm based in Mount Kisco, N.Y., publishes the Westchester County Business Journal in New York state and the Fairfield County Business Journal in Connecticut.