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Journey-hailing firms Uber and Lyft can pay a mixed $328 million US to settle wage theft claims in New York, Legal professional Common Letitia James introduced Thursday.
James mentioned the settlements resolve investigations into the businesses improperly charging drivers gross sales taxes and different charges when the prices ought to have been paid by prospects.
Uber can pay $290 million US and Lyft can pay $38 million US. The cash will likely be distributed to present and former drivers, she mentioned. The businesses have additionally agreed to offer drivers exterior of New York Metropolis with paid sick go away and provides drivers exterior of New York Metropolis a minimal wage of $26 per hour.
“For years, Uber and Lyft systemically cheated their drivers out of tons of of hundreds of thousands of {dollars} in pay and advantages whereas they labored lengthy hours in difficult situations,” James mentioned in an announcement.
Tony West, chief authorized officer for Uber, mentioned the settlement “helps put to relaxation the classification concern in New York and strikes us ahead with a mannequin that displays the best way persons are more and more selecting to work.”
Lyft’s chief coverage officer, Jeremy Chook, mentioned in an announcement, “This can be a win for drivers, and one we’re proud to have achieved with the New York Legal professional Common’s Workplace.”
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