NEW YORK — 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.
James said the settlements resolve investigations into companies that improperly charged 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.
Tony West, Uber’s chief legal officer, said the deal “helps solve the classification problem in New York and moves us forward with a model that reflects the way people increasingly choose to work.”
Lyft chief policy officer Jeremy Bird said in a statement: “This is a victory for drivers and we are proud to have achieved it with the New York Attorney General’s office.”
2023-11-02 13:02:29
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