A judge recently said she would begin reinstating fines, which have ballooned to the millions, against a local ride-hailing company and its CEO for failing to comply with an order to stop operating in the District.
The decision comes after an appellate panel earlier this month rejected an effort to pause the judge’s contempt proceedings against Empower and chief executive Joshua Sear.
D.C. Superior Court Judge Shana Frost Matini — who had paused the levying of fines during the appeal — called the appellate court’s language “very strong” and said it would be appropriate to reinstate the fines.
“The purpose here is not to penalize,” Matini said in a recent court hearing. “It’s to encourage compliance.”
In total, Empower and Sear have collectively racked up around $7 million in court sanctions since Matini first ordered the fines last year.
The decision marked the latest development in the legal battle involving Empower, which markets itself as a cheaper alternative to other ride-hailing services like Lyft and Uber. The company began operating in the District in 2020.
The city’s Department of For-Hire Vehicles issued a cease-and-desist order that year against the company for failing to register as a private sedan business and digital dispatch service, according to court filings. Empower applied to register with the department in December 2020 but was denied after the city deemed the applications incomplete, the filings said.
Matini ordered Empower to cease operations in 2024 until the company successfully registers with the city.
Months later, after the company continued offering services, Matini issued a conditional order of contempt in February 2025 against Empower, which brought on a daily fine of $25,000, according to court filings. She later imposed a $5,000 daily fine against Sear.
Empower once again applied to register with the Department of For-Hire Vehicles that spring, its attorneys said, but was denied. Empower attorneys said the company was denied illegally and that they are now appealing in court.
Ride-hailing services operating in D.C. must meet requirements such as paying 6 percent of revenue to the city, sharing ride data, providing commercial insurance and background checks, and having logos displayed on all vehicles.
Every driver on Empower must provide their driver’s license, a copy of their insurance card, vehicle registration and agree to “abide by all applicable laws and regulations,” according to Empower’s court filings. They must also undergo a background check.
Last September, facing possible incarceration, Sear said he would comply with the judge’s order and stop operating in D.C. as a private sedan business and digital dispatch service.
Sear kept the Empower app intact by offering drivers within city limits free use of the software without any service agreement. Drivers pay to subscribe to Empower but they set their own fares and keep all the earnings, which Sear and his attorneys have argued make the company a booking platform, rather than a transportation service.
Amid questions of whether Empower was operating as a private vehicle-for-hire company under its new business model, Matini stayed her contempt order in October at Empower’s request as the company appealed, according to court filings.
The D.C. Council clarified the definition of a private vehicle-for-hire operator in November, according to the filings, removing language that drivers had to be operating “in contract” with a company. Attorneys for the District argued for the contempt sanctions to be reinstated, which Matini ultimately did this month after the appellate court denied Empower’s attempt to pause her ruling.
In court Friday, Sear and Empower’s attorneys said they would ask the appellate court for another hearing. But Matini declined to wait to levy the sanctions until that happened.
At the hearing, the D.C. Attorney General’s Office asked for a bench warrant because Empower continued operating in violation of the court order.
“Empower remains out of compliance with this court’s order,” said Christopher Southcott, an assistant attorney general. “The law is very clear that they need to cease to operate.”
Matini denied the request, noting Sear was absent from court because of a medical issue. The hearing was rescheduled for March 23.
Rachel Weiner contributed to this report.
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