- New York Attorney General Letitia James has said Uber and Lyft will pay $328 million after they ‘systematically’ cheated drivers out of wages and benefits
- More than 100,000 current and former drivers in the state will be entitled to settlement funds and related benefits after an investigation
- James accused the two of improperly deducting sales tax and workers’ compensation fund fees from drivers’ payments
Uber and Lyft will pay a joint $328 million wage theft settlement to their drivers after stealing part of their wages.
New York Attorney General Letitia James said Uber will pay $290 million and Lyft will pay $38 million after deducting the sales tax on driver wages, rather than adding it to the state’s fares passenger.
More than 100,000 current and former drivers in the state will be entitled to settlement funds and related benefits.
Drivers also get hourly rates and paid sick leave, as well as notices and in-app chat support to answer their questions about earnings and working conditions.
James said the two companies had “systematically cheated” drivers out of their wages and benefits.
Attorney General Letitia James, seen here, said Uber will pay $290 million and Lyft $38 million to resolve an investigation by her office
More than 100,000 current and former drivers in the state will be entitled to settlement funds and related benefits
In a statement, she said: “Rideshare drivers work at all hours of the day and night to get people where they need to go.
“For years, Uber and Lyft have systematically cheated their drivers out of hundreds of millions of dollars in wages and benefits while working long hours under challenging conditions.
“These drivers overwhelmingly come from immigrant communities and rely on these jobs to provide for their families.
“These settlements will ensure that they finally get what they have rightfully earned and are owed under the law.”
James accused Uber and Lyft of improperly deducting sales taxes and workers’ compensation fund fees from drivers’ payments, even though passengers should have paid those amounts.
Uber’s alleged violations occurred from 2014 to 2017, and Lyft’s from 2015 to 2017.
James also said what the companies had done was the “largest wage theft settlement” her office had ever won.
The two have defended claims across the country that they deprive drivers of pay and benefits, sometimes by classifying them as independent contractors rather than employees.
James accused Uber and Lyft of improperly deducting sales taxes and workers’ compensation fund fees from drivers’ payments even though passengers should have paid them
James said both companies have also denied drivers sick leave that state and New York City workers are legally entitled to.
The investigation stemmed from concerns raised by the New York Taxi Workers Alliance, which says it represents about 21,000 drivers of yellow cabs, green cabs, app-based cars, liveries and commercial vehicles.
Under the settlement, drivers outside New York City will receive a minimum of $26 per hour for rides and sick leave, adjusted annually for inflation.
Drivers in New York City already receive a minimum wage and some paid time off, as required by the city’s Taxi and Limousine Commission.
James said Uber and Lyft drivers there will receive $17 an hour for sick leave, with adjustments for inflation.
New York Taxi Workers Alliance Executive Director Bhairavi Desai said, “We are thrilled that our members achieved this historic victory to recover their stolen income.
“For years, our union has fought to recover stolen wages from Uber and Lyft drivers in New York City who were deprived of better living conditions, timely meals, rest and time off.”