Uber and Lyft pay $328 million to settle wage theft claims in a New York courtroom case

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Journey-hailing corporations Uber and Lyft pays a mixed $328 million to settle wage theft claims in New York, Legal professional Common Letitia James introduced Thursday.

The settlements resolve investigations into corporations that improperly charged drivers gross sales taxes and different charges when clients ought to have paid the prices, James stated.

Uber pays $290 million and Lyft pays $38 million. She stated the cash can be distributed to present and former drivers. The businesses additionally agreed to offer drivers outdoors New York Metropolis with paid sick depart and provides drivers outdoors New York Metropolis a minimal wage of $26 per hour.

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“For years, Uber and Lyft have systematically defrauded their drivers out of a whole bunch of thousands and thousands of {dollars} in wages and advantages whereas they labored lengthy hours in tough situations,” James stated in an announcement.

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Tony West, Uber’s chief authorized officer, stated the settlement “helps put an finish to the classification subject in New York and strikes us ahead with a mannequin that displays the way in which individuals more and more select to work.”

“This can be a win for drivers, and one we’re proud to realize with the New York Legal professional Common’s Workplace,” Lyft chief coverage officer Jeremy Byrd stated in an announcement.

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