As per Attorney General Letitia James’ office on Thursday, Uber and Lyft have agreed to pay a total of $328 million to settle claims that the ride-hailing businesses illegally withheld drivers’ earnings and neglected to give paid sick leave, which is necessary in New York.
$290 million will be paid by Uber, and $38 million by Lyft. It’s the biggest wage-theft settlement the state AG’s office has prevailed over.
The funds are intended for drivers impacted by the corporations’ purported business practises. The money and advantages obtained by the agreements may be available to more than 100,000 drivers in New York, according to James’ office. The process for filing a claim will be communicated to drivers via text, email, or letter.
“For an extended period, Uber and Lyft defrauded its drivers of hundreds of millions of dollars in compensation and benefits while they toiled long hours under difficult circumstances,” a statement from James said. “This settlement will guarantee that they receive what they have earned legally and are due. My office will persist in ensuring that businesses engaged in the ‘gig economy’ do not violate workers’ rights or discriminate against them.
The agreements, which end the lengthy investigations, represent the companies’ most recent compromises in a national dispute with regulators on the amount of oversight they ought to have and the obligations they have to their drivers. In the past, Uber and Lyft have opposed attempts to reclassify their workers as employees rather than contractors, citing worker opposition from the majority of their workforce.
Uber made $9.23 billion in sales in the latest quarter; the settlement amounts to more than 3% of that amount. Additionally, Lyft’s payout represents about 4% of its claimed $1.02 billion in income.