A cab driver in the US, who lost his license after he was accused of masturbating while driving, has been told he will not get his job back, by an appeals court.

Angel Bautista, 55, who insists he was merely adjusting his open fly when a disgusted passenger complained he was playing with himself, had sued the Taxi and Limousine Commission to get his taxi license back and a 1,350-dollar fine reversed.