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Utilization is the share of drivers' working time (or miles) spent with a passenger in the car. TLC's minimum pay rule takes a base amount per mile and per minute and divides it by the utilization rate, so each paid mile and minute also covers the time you spend waiting for a request and driving to the pickup. The rule fixes the rates at 53.3% for the per-minute part and 68.5% for the per-mile part (§59D-22(b), TLC chapter 59). The published rates you check your pay against already include this step.
The idea in one example
TLC's 2025 notice gives this example. If drivers are logged in for two million hours and carry passengers for one million, utilization is 50%. A trip that would pay $20 on the base rates alone pays $40 after dividing by 50%: "if drivers are only paid for time driving with a passenger, but they spend just as much time waiting… then they will earn half the income" (TLC Notice of Promulgation).
The math behind today's rates
Our calculation from TLC's expense report, 2025 notice and Industry Notice #26-03. You don't need to repeat it: always check pay with the published rates.
Why two rates, and why they're fixed
Before the 2025 rule, TLC used one time-based rate, starting at 58%. The 2025 rule split it (TLC Notice of Promulgation):
- Time utilization, 53.3%, for the per-minute part: time with a passenger ÷ all time available, en route and on trips. It was measured from May 2023 to April 2024, which TLC calls the latest 12 months when companies were not using lockouts.
- Distance utilization, 68.5%, for the per-mile part: trip miles ÷ all miles driven while working.
- No automatic changes. TLC said it will publish utilization data and change the applied rates only through rulemaking, with public comment.
TLC changed the rule partly because, it said, companies had restricted drivers' app access mid-shift to push measured utilization up, which cut drivers' working hours. The 2025 rule added the 72-hour notice and 16-hour access protections: see app lockouts.
What about breaks?
Source: TLC Driver Pay for Bases. TLC also says the rules "do not set the passenger fare or establish a minimum wage" (TLC Driver Pay).
Check your statements
- Your receipts must show the minimum per-mile and per-minute rates for the period (§59B-18(f)(5)). These should be the published rates, with utilization already in them.
- Hourly pay is allowed, but each hour must pay at least the per-mile and per-minute amounts for that hour's trips (§59D-22(a)(5)).
- Run any trip through the minimum pay estimator. Rate changes over time are on minimum pay rate history, and the short definition is under utilization rate.
The full rule, including tips, tolls and complaints, is on Uber and Lyft minimum pay. More on the apps hub.
Frequently asked questions
What is the utilization rate in TLC's pay rule?
It is the share of drivers' available time (or miles) spent carrying passengers on app trips, across all drivers. TLC's rule now applies 53.3% to the per-minute rate and 68.5% to the per-mile rate.
How does utilization raise my pay per trip?
The base per-mile and per-minute amounts are divided by the utilization rate. Dividing by a number below 1 makes each paid mile and minute worth more, so trip pay also covers time waiting and driving to pickups.
Do my breaks lower my pay?
No. TLC says that if a driver takes a break and is not available for a dispatch, that time does not count toward the utilization rate. The applied rates are also fixed in the rule, not calculated from your own day.
Can Uber or Lyft pay me by the hour instead?
The rule allows it, but each hour's pay must be at least the per-mile and per-minute amounts for all trips you did in that hour (rule 59D-22(a)(5)).
Do I need to divide the published rates by utilization myself?
No. TLC's published rates ($1.283 per mile and $0.681 per minute in the city from March 1, 2026) already include the utilization rate.
Sources
Last reviewed against the official sources on .
- TLC Rule Book, Chapter 59 (§59D-03(j), §59D-22(a)-(b)) nyc.gov
- TLC Notice of Promulgation: driver pay rules adopted June 25, 2025 nyc.gov
- TLC: Driver Pay for Bases (FAQ on utilization and breaks) nyc.gov
- TLC: Driver Pay nyc.gov
- TLC Industry Notice #26-03 nyc.gov
- TLC: Revised HV-FHV Minimum Pay Standard Expense Model, Exhibit 2 (Dec 2024) nyc.gov
Spotted something out of date? Tell us and we'll check it against the official source.
TLC Help is not a law firm and is not affiliated with the NYC Taxi & Limousine Commission or OATH. Explanations on this site are general information, not legal advice. Legal representation is provided by independent attorneys and OATH-registered representatives in our network.