Uber and Lyft agree to a $328 million payout for New York drivers

Uber and Lyft have agreed to pay New York drivers a $328 million settlement after the attorney general investigated a wage theft complaint in which the companies collected certain taxes and fees from drivers instead of passengers.

Uber will pay $290 million and Lyft will pay $38 million into two funds that will pay claims eligible for about 100,000 current and former drivers in New York state. The taxi companies have not admitted any fault in the settlement.

The investigation by Attorney General Letitia James’ office also looked at whether the companies had failed to provide drivers with paid sick leave that was available to workers in the state.

“We thank Attorney General James and her team for their hard work in reaching a resolution that balances responsibility and innovation while meeting the real needs of these hardworking drivers in New York,” said Tony West, Chief Legal Officer from Uber, in a statement. .

Lyft Chief Policy Officer Jeremy Bird said in a statement: “This is a victory for drivers, and one we are proud to have achieved with the New York Attorney General’s office.”

Under the scheme, drivers receive 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 so that drivers can request sick leave through the apps.

Out-of-town drivers are also entitled to a guaranteed minimum wage of $26 per hour, although that figure only measures the time between dispatch and completion of a trip. Drivers in the city already receive a minimum driver salary according to regulations established by the Taxi and Limousine Commission in 2019.

Check back for updates on this developing story.