(Adds charges, settlement details, Uber’s separate agreement with New York Attorney General) by Jonathan Stempel
Uber Technologies UBER.N has reached an agreement with the New York State Department of Labor to help ensure eligible drivers and couriers can obtain unemployment benefits, New York Governor Kathy Hochul said Thursday .
The ride-hailing company agreed to begin making quarterly payments to the New York State Unemployment Insurance Trust Fund, which funds benefits for unemployed workers, as well as a retroactive payment for amounts owed since 2013.
Although the amount of the payments was not disclosed, Ms Hochul said the “transformative” settlement made New York the first US state to settle claims against Uber to address past and future liability. unemployment insurance.
The settlement grew out of a long-simmering question over whether Uber and rivals such as Lyft LYFT.O should classify drivers as employees or as independent contractors.
The New York labor agency believes Uber drivers and couriers are employees for unemployment insurance purposes, while Uber believes they are independent contractors.
Thursday’s agreement does not resolve that dispute, but Ms. Hochul said Uber agreed that drivers eligible for unemployment benefits would receive them.
Tony West, Uber’s chief legal officer, said in a statement that the deal “will allow drivers to continue to enjoy the independence and flexibility they value, while having access to important protections.”
Separately, Uber and Lyft agreed Thursday to pay a total of $328 million to settle charges by New York Attorney General Letitia James that they systematically defrauded drivers out of pay and benefits. social advantages.
Uber will pay $290 million and Lyft $38 million.
2023-11-02 15:07:10
#Uber #Settles #York #State #Driver #Unemployment #Claims
