Las Vegas Sun

April 26, 2024

Regulators drop taxi tip rule

The Nevada Taxicab Authority will strike a regulation restricting tips to cab drivers so that regulators can instead focus on other consumer issues.

John Plunkett, administrator of the Taxicab Authority, said the five-member board voted Monday to repeal the regulation. The matter will be reviewed by state officials and the policy is scheduled to officially change in about 30 days.

Under current policy, the city's 4,600 cab drivers are not allowed to accept gratuities from anyone but a passenger or the driver's employer. The regulation was routinely ignored, however, and drivers were compensated for bringing patrons to business establishments by their owners.

While most of the focus of illegal gratuities has been on adult entertainment establishments, other businesses, including production shows and restaurants, have been accused of offering illegal tips.

Critics of the regulation have said there is nothing wrong with a cab driver accepting tips from business sources to supplement their income and drivers routinely are asked for advice from tourists on where to go for food and entertainment.

Plunkett said with the tip regulation off the books, his agency's 40 investigators would be able to pay more attention to consumer issues that are more critical -- "diversion," the practice of pressuring a passenger to go to a destination other than the one originally intended, or "long-hauling," using a longer route than necessary to get to a destination.

"Our agents will continue with sporadic undercover rides to address the diversion issue," Plunkett said. "Under the new policy, they (drivers) can now accept gratuities for doing the right thing. It's a Vegas tradition for cab drivers to offer their advice on restaurants and shows. But if we catch them diverting, it can cut into their livelihood, because we're talking about (license) revocations and suspensions."

Ruthie Jones, vice president of the Industrial Technical Professional Employees union, which represents about 2,000 drivers, said the union initially petitioned the Taxicab Authority about repealing the tip regulation. She said the tip issue was vague for drivers and businesses because some companies offered holiday parties and appreciation events for drivers that some considered to be a form of tipping.

Las Vegas entertainer Lance Burton, owner of Trip Sheet, a magazine read by cab drivers, accepted advertising from businesses that offered incentives to drivers, but stopped when the issue was raised months ago. Burton also offered incentives to drivers who recommended his magic show to visitors.

"Under the new policy, Lance Burton, who has been very supportive of drivers, would be able to continue," Plunkett said. "And drivers won't have to worry when a passenger says, 'Take me to a good Italian restaurant,' and take them to a place that may offer a deal to drivers."

Clark County and the city of Las Vegas still have ordinances prohibiting some forms of business from tipping cab drivers, but Plunkett said they don't have the resources to enforce those measures. He said if any of his officers could prove that a cab driver violated one of those ordinances, they could cite them, but he added that it's almost impossible to witness a violation with the tipping systems that are in place.

Plunkett said the Taxicab Authority also approved a proposal requiring cab companies to post a sign in each vehicle that identifies the cab company and recommending that passengers note the name and car number for future inquiries. Another proposal requires drivers to check their vehicles for left-behind property after each ride.

The new policies are an attempt to give consumers a better chance to recover lost property inadvertently left in cabs after rides. Plunkett said passengers frequently leave behind cellular telephones, laptop computers, passports and even cash. Recently, he said, a passenger accidentally left $10,000 in a cab that eventually was recovered through efforts by the Taxicab Authority agents and the cab company.

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