Ride-hailing giants Uber and Lyft have reached a significant settlement. It agreed to pay a total of $328 million in the state of New York to resolve wage theft. It was announced by Attorney General Letitia James on Thursday.
The settlements come as a result of investigations into the companies’ improper charging of sales taxes. Also various fees to drivers, which should have been covered by passengers. Uber is set to pay a substantial $290 million, while Lyft will contribute $38 million. With the funds earmarked for distribution among both current and former drivers.
In addition two companies have committed to providing drivers outside of New York City with paid sick leave. It also ensuring a minimum wage of $26 per hour for these drivers.
New York’s Attorney General, Letitia James, underscored the significance of these settlements, stating, “For years, Uber and Lyft systemically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions.”
Uber’s Chief Legal Officer, Tony West, expressed his perspective on the agreement, noting, “This agreement helps resolve the classification issue in New York and allows us to move forward with a model that aligns with the evolving nature of work preferences.”
Lyft’s Chief Policy Officer, Jeremy Bird, shared his thoughts on the settlement. They state, “This is a victory for drivers, and one that we are proud to have achieved in collaboration with the New York Attorney General’s Office.”