The Black Car Fund surcharge is a 2.5% fee added to the fare on for-hire vehicle rides dispatched in New York, and it pays for workers’ compensation and other benefits for the drivers. Passengers pay it automatically as part of the ride cost. The dispatching base or ride-hailing platform collects the money and forwards it to the New York Black Car Operators’ Injury Compensation Fund each month.1The Black Car Fund. F.A.Q.s
Why the Surcharge Exists
Most New York for-hire drivers are independent contractors, not employees. That status historically left them outside standard workers’ compensation, so an on-the-job injury could mean no income and medical bills with nowhere to send them. The state created the fund in 1999 under Article 6-F of the Executive Law to close that gap, and the surcharge is how it is financed.2Justia. New York Executive Law Article 6-F – New York Black Car Operators Injury Compensation Fund, Inc.
The core benefit is workers’ compensation covering medical treatment and lost wages for drivers injured on a dispatched job. Over time the fund expanded into a broader Drivers Benefits Program paid for out of surplus surcharge revenue. It currently includes a $100,000 accidental death benefit, up to $20,000 in critical illness insurance, up to $1,500 per month in accident disability insurance, vision and dental coverage, telemedicine, mental health counseling, prescription discounts, free medical clinics, annual flu shots, and legal and accident support.3The Black Car Fund. $100,000 Accidental Death Benefit4About Drivers Benefits. About Drivers Benefits – The Black Car Fund Drivers pay nothing for any of it.
What the 2.5% Applies To
The surcharge is calculated on the base fare only. It does not apply to tips, bridge and tunnel tolls, the New York congestion surcharge, central business district tolls, or airport access fees.1The Black Car Fund. F.A.Q.s On a $50 ride with a $7 toll and a $10 tip, the 2.5% is figured on the $50, not the $67.
On a ride-hailing app the charge is folded into the fare breakdown you see before you confirm the trip. On a traditional car service invoice it appears as a separate line. Either way, the driver never pays it and never keeps it.
Which Rides and Companies Trigger It
A base has to join the fund and collect the surcharge if it meets all four of these conditions:
- It is a New York State-certified central dispatch facility.
- It dispatches for-hire vehicle service within New York.
- More than 90% of its for-hire business is paid by something other than direct cash from the passenger.
- It does not own 50% or more of the vehicles it dispatches.
That definition sweeps in traditional black car and luxury limousine bases, franchise and co-op operations, non-emergency medical transportation providers, and the major transportation network companies that run ride-hailing apps in New York.1The Black Car Fund. F.A.Q.s Membership is mandatory for any base that qualifies, not something the operator can opt out of.5New York State Senate. New York Executive Law 160-HH – Membership in the Fund; Registration With the Department
Street hails and rides dispatched by non-member bases are outside the system. A passenger who flags down a car on the street is not paying the surcharge, and the driver on that trip is not covered by the fund either.1The Black Car Fund. F.A.Q.s
The Rate and How It Changes
The 2.5% rate took effect February 1, 2025, down from 2.75%.6The Black Car Fund. Member Base Resources The fund’s board sets the rate based on its estimated operating costs. When the board files a proposed rate with the New York State Department of Financial Services, the new rate takes effect 30 days later, and the board can file a revised rate on the same timeline if revenue falls short of what the fund owes in benefits.7New York State Senate. New York Executive Law 160-JJ – Assessment of Fund Surcharge The recent reduction is a sign that collections have been running ahead of what the benefits program requires.
A Limit Worth Knowing
If you are a driver reading this rather than a passenger, pay attention to one boundary. Workers’ compensation through the fund only covers injuries that happen on a job dispatched by a member base. A street hail is not covered. Jobs dispatched by non-member bases are not covered, even if other work you do that week runs through a member base.1The Black Car Fund. F.A.Q.s A driver who assumes every ride is covered can find out otherwise after an accident, so it’s worth confirming membership status for each base you accept jobs from.