Uber and Lyft Strike NYC Deal to Scale Back Driver Lockouts (2)

New York City officials backed off a threat to slap Uber Technologies Inc. and Lyft Inc. with new minimum-pay regulations after the companies agreed to rein in driver lockouts, a recent practice that has caused a sharp decline in some drivers’ take-home pay.

The New York City Taxi and Limousine Commission confirmed the arrangement on Wednesday in a statement from the mayor’s office.

Uber and Lyft have been locking drivers out of their apps mid-shift in an effort to avoid paying them for idle time they rack up between rides, Bloomberg reported last month. As a result, some drivers say ...