Ride-hailing services Uber and Lyft have agreed to pay a huge $328 million settlement to New York drivers following wage-theft allegations. The case stems from an investigation by State Attorney General’s office, which probed complaints that the companies collected taxes and fees from drivers rather than passengers. Uber will contribute $290 million and Lyft the remaining $38 million to two funds that will compensate about 100,000 current and former drivers in New York. The firms, however, have not admitted to any wrongdoing as part of the deal.
The probe also examined whether the companies failed to provide drivers with the paid sick leave that should be available to all employees in the state. Consequently, under the settlement, drivers will now receive one hour of sick pay for every 30 hours worked, capped at 56 hours per annum. Updates to Uber and Lyft’s apps will also allow drivers a means to request sick leave.
In addition to the above changes, drivers outside of New York City will be entitled to a guaranteed minimum pay of $26 per hour; however, this only applies to the duration between a ride’s assignment and its completion. Minimum pay for drivers within the city has been already established under 2019 regulations set by the Taxi and Limousine Commission. Both Uber’s Chief Legal Officer Tony West and Lyft’s Chief Policy Officer Jeremy Bird have expressed their satisfaction with the settlement and the work of the attorney general’s office. Further updates on this story are expected.