NYC Taxi Drivers Win Big: $140 Million Settlement for Unfair License Suspensions

<img src="https://static01.nyt.com/images/2025/08/13/multimedia/13met-taxi-settlement-jgtq/13met-taxi-settlement-jgtq-articleLarge.jpg?quality=75&amp;auto=webp&amp;disable=upscale" alt="A hand holds open a yellow New York City taxi cab door." >

Nearly 20,000 New York City taxi drivers will receive a settlement of up to $140 million after a class-action lawsuit revealed their licenses were unfairly suspended without proper due process.

This landmark settlement, potentially one of the largest in NYC history, addresses the unconstitutional suspension practices of the Taxi & Limousine Commission (TLC) between 2003 and 2020. The TLC suspended licenses following arrests without providing adequate avenues for appeal.

Key Details of the Settlement:

• Payouts: Drivers will receive payouts based on the length of their suspension, with those suspended for over a year potentially receiving up to $36,000 (before legal fees).
• Legal Action: The lawsuit, filed nearly two decades ago, challenged the TLC's procedures. Judge Richard J. Sullivan of the U.S. Court of Appeals for the Second Circuit approved the settlement.
• TLC Reform: The TLC has since amended its disciplinary practices to align with constitutional due process standards, as mandated by the Second Circuit's 2020 ruling. The updated policy requires the TLC to determine if a driver poses a “direct and substantial threat to public health or safety” before license suspension.

Learn more about the updated TLC policy

This substantial settlement marks a significant victory for NYC taxi drivers and highlights the importance of fair treatment and due process within the city's regulatory systems.