Uber and Lyft Found a Loophole in a Driver Pay Law. Drivers Pushed Back.

As ride-hailing companies and labor unions each push New York City to amend its rules, drivers hurt by widespread app lockouts are struggling to make ends meet.

New York City was the first place in the United States to mandate minimum pay rates for drivers for companies like Uber and Lyft. But after the companies found a loophole that made it much harder for some drivers to get by, the city is looking to change its law, prompting dueling pressure campaigns as both sides seek to influence the outcome.

Earlier this year, the two companies began imposing what came to be known as lockouts, which prevented drivers from signing into the applications during certain periods. The companies said the city’s minimum pay law, which takes into account how much of drivers’ working time is spent transporting passengers, had forced their hands. Bloomberg first reported on the lockouts.

Amadou Diallo, 38, is one of many drivers who say the lockouts have severely affected his take-home pay. Mr. Diallo, who has been driving full-time for Uber and Lyft for four years, said he used to make up to $350 on a given weekend day, before expenses, but is now making less than $200 during such shifts because of the lockouts.

Uber stopped locking out drivers in September, two months after reaching a temporary agreement with the city, but has since begun a push to lower drivers’ pay. Lyft has continued the lockouts, and Mr. Diallo has felt the financial impact. An entire week can go by without the ability to sign into Lyft in New York, he said, and he has had to travel to New Jersey just to get access.

“I have to reduce so many things,” Mr. Diallo said, adding that he can no longer afford to live alone and had to move in with roommates in Flatbush, Brooklyn.

He has also stopped going out to restaurants with his family on the weekends and buying new clothes.