Ride-hailing companies Uber and Lyft will pay a combined total of $328 million to settle wage theft lawsuits in New York, Attorney General Letitia James announced Thursday.
The prosecutor stated that the agreements resolve investigations into companies that improperly charge drivers sales taxes and other fees when the costs should have been paid by customers.
Uber will pay $290 million and Lyft will pay $38 million. The money will be distributed among current and former drivers, she said.
The companies also agreed to provide drivers outside of New York City with paid sick leave and give drivers outside of New York City a minimum wage of $26 per hour.
“For years, Uber and Lyft systematically cheated their drivers out of hundreds of millions of dollars in wages and benefits while they worked long hours under difficult conditions,” James said in a statement.
What Uber and Lyft respond
Tony West, Uber’s legal manager, said the agreement “resolves the classification problem in New York and moves us forward with a model that reflects the way more and more people choose to work.”
On behalf of Lyft, CEO Jeremy Bird said that “this is a victory for drivers and we are proud to have achieved it with the New York Attorney’s Office.”
Uber and Lyft have become a presence in New York in recent years, as user-friendly apps have largely replaced the iconic yellow taxis. Companies have been slow to adapt to rules governing taxi services in cities like New York and have been reluctant to give drivers basic job protections and benefits.
New York was the first city in the country to establish a minimum wage for these drivers, classified as independent contractors in the so-called collaborative economy (gig economy). The city has also mandated a minimum wage for food delivery services like Uber Eats.
“We have waited eight long years to get justice for our members, a workforce that was deceitfully deprived of better living conditions, meal times and rest because the profits that would have given them that life were stolen by multi-billion dollar corporations,” said the New York Taxi Workers Alliance executive director Bhairavi Desai said in a statement.
Who will benefit
If you drove for Uber in New York State between November 10, 2014 and May 22, 2017 or were a Lyft driver between October 11, 2015 and July 31, 2017, you will benefit because it is possible Companies may owe you money if they made deductions for New York sales tax and Black Car Fund fees.
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Dozens of enforcement drivers participated in this caravan.
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These workers have seen their income reduced due to the rise in fuel prices.
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Through this initiative they demand from platforms like Uber a fairer salary in line with the increase in gasoline.
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In some areas of the country, the price of gasoline is reaching record levels.
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In recent days, New York taxi drivers asked for a 75-cent increase in their fares to offset high fuel costs.
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California truckers have also threatened to go on strike if their conditions do not improve.
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Several states have decided to suspend the gasoline tax in order to reduce the impact of rising prices.
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New deliveries of stimulus checks have also been proposed.
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Learn how to get lower gasoline prices.
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Hundreds of Uber and Lyft drivers in the Bay Area turned off their apps today and took to the streets of San Francisco to protest and demand better wages and working conditions from the companies.
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The demonstration took place within the framework of Uber’s Initial Public Offering (IPO) scheduled for Friday. The ride-hailing company hopes to raise about $9 billion from investors, which could value the company at $90 billion.
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Hundreds of Uber drivers descended on Uber’s headquarters in San Francisco as part of the national day of action. Lyft drivers joined the protests.
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The demonstrations occurred simultaneously in several of the most important cities in the world, including San Francisco, Los Angeles, Chicago and New York, as well as several European cities.
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“Uber, you are leaving us in poverty,” was one of the messages that a protester had for the company. One of the main complaints from drivers is that Uber takes an increasingly larger percentage with each trip.
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Strike organizers claim that, while the Initial Public Offering will be worth millions and will attract large investors, the company has reduced drivers’ pay. Often, they say, many end up earning less than the minimum wage.
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This is not the first time that Uber and Lyft drivers have participated in a protest. However, the impacts on service during past demonstrations have not been considerable.
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“Drivers are the heart of our service, we cannot be successful without them and thousands of people come to work at Uber daily thinking about how to improve their experience on and off the road,” the company said in a statement in response to the questions. protests.
Credit: Miguel Gómez | Univision 14
2023-11-02 15:19:00
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