“Historic” agreements. In the United States, the vehicle reservation platforms Uber and Lyft have reached agreements with the courts of New York State: they will have to return $328 million to injured drivers ($290 million for Uber and $38 million for Lyft). This is the largest compensation theft settlement ever obtained by the state’s attorney’s office, according to a statement.
“For years, Uber and Lyft systematically defrauded their drivers out of hundreds of millions of dollars in wages and benefits while they worked long hours in harsh conditions,” said Letitia James, U.S. Attorney General. New York, in the press release. Investigations also determined that Lyft and Uber’s operating rules “prevented (drivers) from receiving valuable benefits available under New York labor laws.”
More than 100,000 drivers are likely to receive a share of the amounts recovered and benefit from the new benefits obtained. “That’s $328 million that will go back into the pockets of drivers,” the Alliance of New York Taxi Employees rejoiced on X (formerly Twitter). “We have waited eight long years for justice to be done for our members,” she added.
The companies had to charge a local tax of 8.9% on trips as well as a tax of 2.5% for a driver assistance fund. But they removed these sums from the drivers’ remuneration, which was contrary to the law, and camouflaged them in the commission they took, according to New York justice.
A salary “floor”
In addition to financial sanctions, the two groups will have to, in this State, create a minimum “floor” of remuneration, paid sick leave (up to 56 hours per year), provide “correct” information in terms of recruitment and remuneration as well as other “improvements in working conditions,” said the court press release.
He explains that between 2014 and 2017, Uber deducted from payments to its drivers taxes that should have been charged to passengers. The group specified that they could actually charge passengers, but without providing them with the option to do so in the application. Lyft operated similarly between 2015 and 2017, charging an 11.4% “administrative fee.”
Uber and Lyft have not admitted to the allegations or to having broken the law. “Today, Uber reached a landmark, first-of-its-kind agreement,” which represents “a victory for New York State drivers who can now enjoy the flexibility so important to them while having new benefits and protections,” reacted Uber’s chief legal officer, Tony West. Lyft also welcomed in a press release a “landmark agreement” that “prioritizes the benefits drivers value without sacrificing the independence and flexibility they need.” “This is a win for drivers and one that we are proud of,” commented Managing Director Jeremy Bird.
These platforms, in particular Uber, quickly became the subject of strong resistance, to the point of being banned in Bulgaria, or heavily restricted. Prosecutions have also been launched for unfair competition, as in France, or concerning working conditions and the status of drivers.
2023-11-03 07:09:00
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