New York (CNN) Lyft is suing the New York City Taxi and Limousine Commission over its first-of-a-kind driver minimum wage law, claiming its implementation would hurt its business.

The agency voted on a minimum pay formula in December to protect ridehailing drivers from being underpaid by companies.

Under the new policy, which is slated to go into effect on February 1, drivers will earn a minimum take-home wage of $17.22 per hour. That's the ridehailing equivalent of a $15 minimum wage, accounting for the fact that drivers have to cover payroll taxes and don't get paid time off, the TLC said.

The move would raise the average driver's pay by $9,600 per year, according to the proposal.

The calculation takes into consideration a "utilization rate" based on how often drivers on a platform have a customer in the car -- and Lyft is taking issue with this.

Read More