D.C. Taxi Lawsuit: Are Drivers Paid Too Much Or Too Little?

WASHINGTON -- Are taxi-fare rates in the nation's capital too high or too low? On Tuesday, as The Huffington Post reported, two associations representing D.C. cab drivers filed suit against the District of Columbia's taxicab commission, its chairman and D.C. Mayor Vincent Gray, alleging that the city has subjected cab drivers to unfair regulatory practices.

One allegation: D.C. cab drivers are working too long for too little in return.

But as Reason magazine's Jim Epstein writes, "if anything, cab fares in D.C. are too high." According to Epstein:

The lawsuit alludes to a study by Edgeworth Economics showing that D.C.'s taxis are among the cheapest in the nation, but in many other cities drivers have to pay as much as $150 a day to rent a medallion. Thankfully, D.C. doesn't have medallions (yet) and the industry is dominated by owner-operators, so drivers keep what they earn after expenses. The drivers I've met (including the leaders of the D.C. Professional Drivers Association, which is a co-plaintiff in the suit) speak with pride about earning enough to send their kids to college, owning their homes, and funding their retirements.

Another complaint in the lawsuit is that there hasn't been any credible research studying the rate structure -- a study by George Washington University was flawed, the suit alleges. The plaintiffs want the taxicab commission to "expeditiously" conduct a rate study and "establish a reasonable rate schedule for taxicab services following, and based upon, the results of a properly-conducted rate study."

Until then, the debate over whether D.C.'s cab drivers get paid too much or too little will continue to stew.

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