Friday, November 03, 2023

New York announces $328 million settlement with Uber, Lyft over driver wage theft


New York said Uber and Lyft on Thursday agreed to a $328 million settlement over allegations of wage theft.
John Angelillo/UPI | License Photo

Nov. 2 (UPI) -- New York Attorney General Letitia James announced on Thursday that her office reached a $328 million settlement with Uber and Lyft over allegations of wage stealing from its drivers.

James said that drivers will receive mandatory paid sick leave, minimum pay and a handful of other benefits as part of the settlement in the case that charged Uber and Lyft were withholding "hundreds of millions" of dollars in unpaid funds, along with denying them of state-required labor benefits.

Uber will pay $290 million and Lyft will pay $38 million in two separate settlement funds that will go to backpay to drivers, paid sick leave, proper hiring and earnings notices, and other improvements in drivers' working conditions.

"Rideshare drivers work at all hours of the day and night to take people wherever they need to go," James said in a statement. "For years, Uber and Lyft systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions

"These drivers overwhelmingly come from immigrant communities and rely on these jobs to provide for their families. These settlements will ensure they finally get what they have rightfully earned and are owed under the law."

James said on social media that more than 100,000 drivers were cheated out of wages and will now be eligible to get some relief. Her office said eligible drivers will be able to file a claim to receive the funds they are owed.

Notices concerning the distribution will be delivered to drivers by mail, email and/or text message.

"We are thrilled that our members won this historic victory to recover their stolen income," said New York Taxi Workers Alliance Executive Director Bhairavi Desai said in a statement. "For years, our union has been fighting to recover stolen wages for New York City Uber and Lyft drivers who were cheated out of better living conditions, timely meals, rest, and leisure.

"We're proud to be the union that fights for New York City drivers, and we're thankful to Attorney General Letitia James, who stood by workers, believed in our complaint, and understood the urgency of this recovery."



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