The vehicle reservation platforms Uber and Lyft have reached agreements with the New York State justice system under which they will return $328 million to drivers and notably create a salary “floor”.
These agreements constitute the largest transaction in terms of remuneration theft ever obtained by the prosecutor’s office of this state, he underlined Thursday in a press release.
They provide for the payment by Uber of 290 million dollars and by Lyft of 38 million, which will be “entirely” returned to the injured drivers.
“For years, Uber and Lyft systematically defrauded their drivers 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, cited 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 sums recovered and benefit from the new advantages obtained under these “historic” agreements.
“That’s $328 million that will go back into the pockets of drivers,” rejoiced on X, formerly Twitter, the Alliance of New York Taxi Employees.
“We have waited eight long years for justice 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.
– “Victoire” –
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”, responded Uber, with a message from its legal director Tony West published on the website.
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”, specified the justice 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 in a similar manner between 2015 and 2017, charging an “administrative fee” of 11.4% — which corresponds to the accumulation of taxes in question.
The company hailed a “landmark agreement” in a statement that “prioritizes the benefits drivers value without sacrificing the independence and flexibility they need.”
“This is a victory for drivers and one that we are proud of,” commented Jeremy Bird, CEO of Lyft, quoted in a press release.
Andrew Wolf, professor at the School of Industrial and Labor Relations at Cornell University, called these agreements “remarkable” because not only do they restore “stolen remuneration but they also guarantee them the right to minimum wage and paid sick leave.
But considering these drivers as independent workers rather than employees still deprives them of full rights and benefits, he noted, citing that it was their responsibility in particular to take care of the maintenance and insurance of the vehicle.
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.
Three delivery platforms, Uber, DoorDash and Grubhub, failed in September to have a minimum wage measure that New York City wanted to impose for bicycle delivery workers, who have become essential during the Covid-19 pandemic, suspended in court.
Uber shares ended Thursday’s session on the New York Stock Exchange up 6.05% and Lyft up 8.40%.
elm/jul/nth
UBER TECHNOLOGIES
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2023-11-02 21:00:31
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