Uber and Lyft have agreed to pay a combined $328 million to settle accusations from New York Attorney General Letitia James that the ride-sharing giants were “stealing earnings” from thousands of drivers in New York City over several years. The settlement includes $290 million from Uber and $38 million from Lyft, covering back pay, paid sick leave, proper hiring and earnings notices, and other improvements to drivers’ working conditions.
Attorney General James announced that more than 100,000 drivers throughout New York are entitled to receive settlement funds, with an average payout of $3,280. However, drivers who began after 2017 are not eligible for additional payments. Along with the settlement, Uber and Lyft have agreed to provide new benefits for leave, payment, training, and job support, including up to one week of paid sick leave per year, effective no later than February 29, 2024.
Eligible drivers can file claims to receive the additional funds they are owed. The settlement concludes multi-year investigations into Uber and Lyft, which found that the companies’ policies withheld hard-earned pay from drivers and prevented them from receiving valuable benefits available under New York labor laws.
“For years, Uber and Lyft systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions,” said Attorney General James. “These drivers overwhelmingly come from immigrant communities and rely on these jobs to provide for their families.”
Uber responded to the settlement with a statement outlining a new benefits model for its drivers, calling the agreement a win for drivers across New York State. Lyft’s Chief Policy Officer, Jeremy Bird, also praised the settlement, expressing a commitment to providing New York drivers with the independence and full range of benefits available to those in other states like California and Washington.
Forms on the attorney general’s website indicate that Uber drivers seeking back pay must have been employed by the app between November 10, 2014, and May 22, 2017, while Lyft drivers entitled to a portion of the settlement must have driven for the company in New York state between October 11, 2015, and July 31, 2017.
The settlement comes amid rising concerns over fare prices during peak times. Recently, some customers reported Uber and Lyft prices soaring well over $100 during a rush-hour rainstorm that shut down large parts of New York City’s subway system. Over the summer, Uber’s CEO was surprised by a $51.69 fare for a less-than-three-mile drive in Manhattan.
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