Court Says Black Car Fund Entitled to Surcharge on Non-Cash Tips

A program that provides workers’ compensation benefits to for-hire drivers in New York can assess surcharges on non-cash tips, a federal appeals court held. The U.S. 2nd Circuit Court of Appeals on Tuesday reversed a district court order granting summary judgment in favor of a certified class of consumers who claimed the New York Black Car Operators’ Injury Compensation Fund was unjustly enriched by the assessment on tips. The 1999 legislation that established the fund as a nonprofit corporation providing work comp benefits to for-hire drivers in New York authorizes a unifor...