Uber and Lyft Settle Wage Theft Claims for $328M in New York

         

Summary: Ride-hailing giants, Uber and Lyft, have agreed to pay a total of $328 million in settlement for wage theft allegations in New York. The settlements come after investigations revealed that the companies wrongly charged drivers for sales taxes and other fees that should have been paid by customers. The money will be distributed to current and former drivers, and both companies have also committed to providing additional benefits to drivers.

Wage Theft Settlement

Uber and Lyft have reached a settlement agreement with the New York Attorney General’s Office, with both companies agreeing to pay a combined $328 million. The settlement resolves allegations of wage theft, as the companies were found to have improperly charged drivers for sales taxes and fees that should have been paid by customers.

Distribution of Settlement

As part of the settlement, the $328 million will be distributed to current and former drivers who were affected by the wage theft. This includes drivers from both Uber and Lyft. The distribution process will be overseen by the New York Attorney General’s Office to ensure that drivers receive their rightful share.

Additional Benefits for Drivers

In addition to the monetary settlement, Uber and Lyft have also committed to providing extra benefits to their drivers. Drivers outside of New York City will now receive paid sick leave, ensuring they have support when they need time off due to illness. Furthermore, drivers outside of New York City will be entitled to a minimum wage of $26 per hour, offering them better financial stability.

Statements from Uber and Lyft

Tony West, chief legal officer for Uber, stated that the agreement resolves the classification issue in New York and allows the company to move forward with a model that better aligns with the preferences of modern workers. Jeremy Bird, Lyft’s chief policy officer, expressed his satisfaction with the settlement and emphasized that it is a victory for drivers.

Tags: Uber, Lyft, wage theft, New York, settlement

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