Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

New Jersey Considering Regulations for Ride-Sharing Providers

Author: Scarinci Hollenbeck, LLC

Date: January 2, 2015

Key Contacts

Back

New Jersey may soon join the growing list of states that have crafted legislation to specifically address the business model adopted by companies like Uber and Lyft.

Key Lessons from Uber’s Record Data Breach Settlement
Photo courtesy of Dan Gold (Unsplash.com)

The Assembly Transportation and Independent Authorities Committee recently advanced a bill that would impose a number of new legal requirements on ride-sharing providers, including minimum insurance requirements.

So-called transportation network companies (TNCs) use a cell phone application to connect drivers using their personal vehicles with passengers who need a ride. While the service has proven to be wildly popular with the public, it has drawn the ire of the both the taxi cab industry and regulators.

In New York City, Uber, Lyft and other e-hail apps are authorized under a one-year pilot program, which was approved by the New York City Taxi and Limousine Commission (TLC) in 2013.  However, other municipalities have taken a more hard line approach by prohibiting ride-sharing services through cease-and-desist letters and threatening to suspend the licenses of participating drivers.

The comprehensive bill currently under consideration by New Jersey lawmakers (Assembly Bill No. 3765) combines seven separate bills. Below are some of the key provisions:

  • TNCs must provide coverage in the amount of at least $250,000 per incident for liability, property damage and uninsured and underinsured motorist coverage, and medical payments coverage in an amount of at least $10,000 per person per incident involving a TNC vehicle.
  • Insurance coverage must be available from the time the third party transportation provider logs on or is otherwise available for hire, until the provider logs out and is no longer available for hire or drops off the last passenger, whichever occurs last.
  • TNCs must register with the New Jersey Motor Vehicle Commission. To secure a permit, TNCs would be required to conduct criminal history record background checks, verify operators’ driving records, and periodically inspect vehicles.
  • TNCs that violate the law would be subject to a civil penalty of $2,000 for the first offense, per driver, and up to $5,000 for each subsequent offense, per driver.

Debate over the proposed legislation is expected to continue. We encourage our readers to check back for updates.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
How to Conduct a Fair and Legal Employee Termination in 2025 post image

How to Conduct a Fair and Legal Employee Termination in 2025

Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]

Author: Angela A. Turiano

Link to post with title - "How to Conduct a Fair and Legal Employee Termination in 2025"
Admin Dissolution for Annual Report: What You Need to Know post image

Admin Dissolution for Annual Report: What You Need to Know

While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]

Author: Dan Brecher

Link to post with title - "Admin Dissolution for Annual Report: What You Need to Know"
What Is Antitrust Litigation Law? post image

What Is Antitrust Litigation Law?

Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]

Author: Robert E. Levy

Link to post with title - "What Is Antitrust Litigation Law?"
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public post image

Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public

Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]

Author: Bryce S. Robins

Link to post with title - "Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!