(CNN) — Ride-sharing company Lyft is trying to block a new minimum wage law for drivers in New York.
The company sued the city’s Taxi and Limousine Commission Wednesday asking it to rid the new law that goes into effect Thursday.
The law raises the minimum wage for ride-sharing drivers to more than $17 an hour. But because of the way it will be implemented, Lyft says the law will effectively benefit its main competitor, Uber.
A drivers’ union says Lyft is only trying to keep its pay low.
New York’s law could become a model for other cities where ride-sharing companies operate.