Taxi Broke Down: Do I Still Pay the Full Lease?

No. If your taxi can't be used for a reason that is not your fault, the owner must pro-rate your lease, so you pay only for the time you had a working cab. This is in TLC rule §58-21(c). TLC's FAQ also says drivers "must be paid back for expenses caused by the vehicle owner failing to meet terms of the lease" (TLC).

Pro-rated leases

The exact wording depends on your type of lease:

The rule does not give a formula. A simple, fair way to show your number is by hours. Example: your day shift cap is $105 (fleet poster), and the cab broke down after 4 of 12 hours. Four-twelfths of $105 is $35. If the owner charged $105, you can ask for the $70 difference. This is our arithmetic, not a TLC table. Current caps by day: taxi lease caps.

Separately, the rule also lets owners offer shorter shifts at a pro-rated price when you ask for one. That is a different situation: can I lease a taxi for less than 12 hours?

Owner breach reimbursement

If the owner fails to do what the lease promises and it costs you money, TLC's FAQ says you "must be paid back." TLC does not publish a list of covered costs. These are our examples of the kind of costs to write down and raise; whether a cost is owed depends on your lease and the facts:

• You paid for a tow or a jump start because the fleet's cab failed.
• You paid for fuel or tolls that your lease says the owner covers.
• You paid for a part or repair that counts as normal service and maintenance (see below).

For fleet leases, service and maintenance are the owner's job, and the owner "must not charge the lessee for service and maintenance costs" (58-21(c)(1)(iii)). Damage that you caused is different: a weekly lease can include a written agreement that you pay for damage caused by your own negligence (58-21(c)(1)(vi)).

How to document

Breakdowns often turn into "your word against mine." Protect yourself the same day:

• Photos or video of the dashboard warning, the flat tire or the tow truck, with the time showing.
• Text the dispatcher or garage right away: "Cab [medallion number] broke down at 3:40 pm at [place]. I can't drive it." Save their answer.
• Your trip records: the time of your last trip shows when you stopped earning.
• Receipts for any money you spent. Owners must give you receipts for every payment and credit, showing the date, your name, the medallion number, the reason, the amount and the TLC rule.
• Your lease. It must be in writing, signed, and you must get a copy.

What happens if the owner refuses

A lease charge above what the rules allow is an overcharge under §58-21(c). The penalty is $500 for a first violation and $1,000 and/or up to a 30-day medallion suspension after that. The judge must order restitution to you, equal to the excess you were charged.

What to do next

Related money problems: taxi security deposit rules, garage won't return my E-ZPass deposit. Owners must not punish you for complaining (58-21(j)). More about the unit that handles this: Driver Protection Unit, and how to file, step by step: TLC Driver Protection Unit guide. If the garage is also holding back your card fares, see my base or fleet didn't pay me for a trip.