Uber and Lyft have agreed to pay New York drivers a $328 million settlement after the state attorney general investigated a wage-theft complaint charging that the companies collected certain taxes and fees from drivers rather than passengers.
Uber will pay $290 million and Lyft will provide $38 million into two funds that will payout claims that roughly 100,000 current and former drivers in New York State are eligible to file. The ride-hailing companies did not admit fault in the settlement.
The investigation by the office of the attorney general, Letitia James, also looked into whether the companies failed to provide drivers with paid sick leave available to employees in the state.
“We thank Attorney General James and her team for their hard work in delivering a resolution that balances accountability and innovation while addressing the true needs of these hard working drivers in New York,” said Tony West, chief legal officer for Uber, in a statement.
Jeremy Bird, Lyft’s chief policy officer said in a statement: “This is a win for drivers, and one we are proud to have achieved with the New York Attorney General’s Office.”
Under the settlement, drivers will earn one hour of sick pay for every 30 hours worked, up to a maximum of 56 hours per year. Uber and Lyft will also make updates to their apps to allow drivers to request sick leave through the apps.
Drivers outside the city will also be entitled to guaranteed minimum pay of $26 per hour, though that figure only counts the time between dispatch and completion of a ride. Drivers within the city already receive minimum driver pay under regulations established by the Taxi and Limousine Commission in 2019.
Check back for updates on this developing story.