New York extends Black Car Fund healthcare benefits for drivers to 2028

A pivotal discussion unfolded in the New York Legislature on May 13, 2025, as lawmakers debated a bill aimed at extending health benefits for black car drivers across the state. The proposed legislation seeks to prolong the authority of the New York Black Car Operators Injury Compensation Fund, allowing it to continue providing essential health-related benefits for an additional three years, until 2028.

The Black Car Fund, established in 1999, was designed to offer workers' compensation coverage to over 100,000 independent contractor drivers affiliated with various ride-hailing services, including Uber and Lyft. Initially funded by a 2% passenger surcharge, the fund has evolved to include additional health benefits such as vision care and telemedicine services, addressing significant gaps in healthcare access for gig workers.

During the session, lawmakers raised critical questions about the fund's sustainability and the implications of subsidizing healthcare for drivers through passenger fees. Some legislators expressed concerns that the current model may lead to unnecessary costs for consumers, particularly as the surcharge has increased to 2.5%. They questioned whether the benefits provided, including dental and mental health services, align with the fund's original intent focused primarily on workers' compensation.

Supporters of the bill emphasized the necessity of these benefits, arguing that they ensure the health and safety of drivers who are often classified as independent contractors and lack traditional employee benefits. They highlighted that without the fund, many drivers would have no access to healthcare, potentially burdening the state with higher medical costs.

As the debate continued, lawmakers acknowledged the importance of maintaining a balance between supporting drivers and managing costs for consumers. The bill's sponsor reiterated that the legislation does not increase the surcharge but merely extends existing provisions, ensuring that drivers can access vital health services while keeping costs manageable for riders.

The outcome of this legislative session could significantly impact the future of gig worker benefits in New York, as lawmakers strive to find a solution that supports both drivers and the riding public. The bill is poised for a vote, with advocates urging swift passage to secure continued healthcare access for those who provide essential transportation services in the state.