Four New York taxi companies that overcharged drivers to lease yellow cabs have agreed to a $1.25 million settlement. Medallions mandatory to operate taxis in New York cost an exorbitant amount of money, which is why most drivers lease them. New York’s Taxi and Limousine Commission estimated that the average driver’s income in 2012, before social security and taxes, was about $125 per day. Because drivers are not considered employees, they are not subject to minimum wage, overtime, and other labor laws. The commission began regulating how much companies can charge drivers earlier this year, and the fines charged to the four companies are the first under the agreement. A total of $746,000 will be returned to drivers who were overcharged, and the companies will pay $500,000 in fines.