Uber and Lyft didn't admit fault in a settlement to resolve wage-theft claims in New York state—but they agreed to cough up $328 million to cover back pay and benefits for around 100,000 current and former drivers. New York Attorney General Letitia James said the settlement, $290 million from Uber and $38 million from Lyft, is the largest settlement of its kind her office has ever received, ABC News reports. James' office said both companies cheated drivers by withholding fees and sales tax from their pay when the charges should have been covered by passengers.
James said the settlement resolves a yearslong investigation of the two companies, reports Reuters. The settlement covers wrongful deductions from the pay of Uber drivers from 2014 to 2017 and Lyft drivers from 2015 to 2017. "For years, Uber and Lyft systemically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions," James said in a statement. "These drivers overwhelmingly come from immigrant communities and rely on these jobs to provide for their families," she said. "This settlement will ensure they finally get what they have rightfully earned and are owed under the law."
Under the settlement, Uber and Lyft drivers in the state will be guaranteed paid sick leave. Outside New York City, where drivers already receive a minimum hourly rate, drivers will receive a minimum rate of $26 per hour. Tony West, chief legal officer for Uber, thanked James and her team for "delivering a resolution that balances accountability and innovation while addressing the true needs of these hard working drivers in New York, " per the New York Times. (More Uber stories.)
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