The Fort Worth Press - Uber, Lyft to pay $328 mn to drivers after New York state probe

USD -
AED 3.672503
AFN 64.501395
ALL 80.912133
AMD 360.183745
ANG 1.789785
AOA 916.999941
ARS 1520.830897
AUD 1.422516
AWG 1.8025
AZN 1.699955
BAM 1.742819
BBD 2.009348
BDT 123.382092
BGN 1.747831
BHD 0.376489
BIF 2990.43851
BMD 1
BND 1.275162
BOB 11.747408
BRL 4.969861
BSD 0.997679
BTN 94.661849
BWP 13.743478
BYN 2.929296
BYR 19600
BZD 2.006389
CAD 1.400505
CDF 2315.999694
CHF 0.823697
CLF 0.025213
CLP 995.549909
CNY 6.67805
CNH 6.66904
COP 3160.52
CRC 455.262384
CUC 1
CUP 23.943254
CVE 98.257011
CZK 21.70405
DJF 177.650251
DKK 6.66169
DOP 61.191756
DZD 134.113045
EGP 54.993397
ERN 15
ETB 162.270996
EUR 0.891269
FJD 2.237202
FKP 0.747708
GBP 0.74725
GEL 2.58976
GGP 0.747708
GHS 11.567354
GIP 0.747708
GMD 74.000173
GNF 8829.007049
GTQ 7.626058
GYD 208.94485
HKD 7.84435
HNL 26.784115
HRK 6.714099
HTG 130.750929
HUF 326.901026
IDR 18108
ILS 3.10555
IMP 0.747708
INR 94.93815
IQD 1512.372907
IRR 1832375.000062
ISK 121.560114
JEP 0.747708
JMD 158.331143
JOD 0.709054
JPY 156.796972
KES 129.820015
KGS 87.448599
KHR 4075.940456
KMF 439.506315
KPW 899.999961
KRW 1321.950223
KWD 0.31069
KYD 0.831395
KZT 452.963349
LAK 22449.752494
LBP 89337.337319
LKR 331.270412
LRD 170.093699
LSL 16.528856
LTL 2.95274
LVL 0.60489
LYD 6.389207
MAD 9.799279
MDL 18.007566
MGA 4511.653397
MKD 54.896387
MMK 2099.851486
MNT 3598.994658
MOP 8.059703
MRU 39.870434
MUR 47.160054
MVR 15.460268
MWK 1729.897835
MXN 18.71225
MYR 4.083969
MZN 63.889513
NAD 16.528635
NGN 1350.280058
NIO 36.713271
NOK 9.319023
NPR 151.460308
NZD 1.75372
OMR 0.382337
PAB 0.99759
PEN 3.426186
PGK 4.467969
PHP 63.865045
PKR 276.070326
PLN 3.92551
PYG 5769.890528
QAR 3.63659
RON 4.765201
RSD 104.702711
RUB 81.498053
RWF 1473.973115
SAR 3.744737
SBD 8.07458
SCR 13.959063
SDG 601.504905
SEK 9.925855
SGD 1.278065
SHP 0.7473
SLE 22.949956
SLL 20969.504398
SOS 570.127561
SRD 37.649502
STD 20697.981008
STN 21.831921
SVC 8.729204
SYP 13001.999685
SZL 16.528174
THB 33.786013
TJS 9.19324
TMT 3.51
TND 2.979046
TOP 2.40776
TRY 49.763018
TTD 6.778679
TWD 32.579897
TZS 2645.037982
UAH 45.16501
UGX 4394.89935
UYU 40.010515
UZS 11938.941909
VES 879.788901
VND 25853
VUV 118.791596
WST 2.767791
XAF 584.634454
XAG 0.018501
XAU 0.000249575098
XCD 2.70255
XCG 1.79797
XDR 0.707052
XOF 584.634454
XPF 106.272445
YER 236.103112
ZAR 16.61885
ZMK 9001.208892
ZMW 20.057833
ZWL 321.999592
SSP 5745.299755
MXV 2.111921
  • RIO

    -0.3300

    97.04

    -0.34%

  • CMSC

    -0.0400

    20.67

    -0.19%

  • RELX

    0.0000

    33.41

    0%

  • RBGPF

    0.0000

    67.95

    0%

  • BCE

    -0.0700

    21.99

    -0.32%

  • BCC

    -0.0300

    75.66

    -0.04%

  • GSK

    0.8600

    51.08

    +1.68%

  • JRI

    -0.0300

    11.52

    -0.26%

  • NGG

    -0.1200

    76.68

    -0.16%

  • CMSD

    0.0900

    20.54

    +0.44%

  • BTI

    -0.0800

    55.75

    -0.14%

  • AZN

    2.0200

    168.1

    +1.2%

  • BP

    -1.4200

    43.16

    -3.29%

  • RYCEF

    0.4600

    19.7

    +2.34%

  • VOD

    0.0700

    17.02

    +0.41%

Uber, Lyft to pay $328 mn to drivers after New York state probe
Uber, Lyft to pay $328 mn to drivers after New York state probe / Photo: © AFP/File

Uber, Lyft to pay $328 mn to drivers after New York state probe

Uber and Lyft will pay $328 million to settle a New York probe alleging that the companies "cheated" drivers, in an accord that also establishes paid sick leave, state officials announced Thursday.

Text size:

The agreement follows state investigations that concluded the companies improperly deducted sums from drivers that should have been charged to passengers, according to New York Attorney General Letitia James, whose office brought the case.

"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 James in a statement.

"These settlements will ensure they finally get what they have rightfully earned and are owed under the law."

Uber praised the agreement as a "landmark" that would advance the company's flexible employment system, while Lyft characterized it as a welcome "win" for drivers that "we are proud to have achieved with the New York Attorney General's Office."

"That's $328 million back into the pockets of drivers!" said the New York Taxi Workers Alliance on X.

"We've waited eight long years to see justice for our members, a workforce that was cheated out of better living conditions, and timely meals and rest and leisure because the earnings that would have provided for that life were stolen by multi-billion dollar corporations!"

The companies were required to collect state and local tax for 8.9 percent of the sales price of the trip from riders, plus 2.5 percent of the cost for the Black Car Fund program for drivers, according to the settlement documents.

But the companies "deducted" the sums from the driver's pay, in violation of the law, said the documents.

From 2014 to 2017, Uber "misrepresented" deductions for sales taxes and for the Black Car Fund program for drivers. Lyft employed a similar system to "shortchange" drivers, the statement from James said.

The companies, further, "did not provide drivers with notices that accurately explained what drivers would earn," said the settlement document.

Neither Uber nor Lyft admitted James' findings or alleged violations of law.

- Sick pay -

Under the agreement Uber will pay $290 million and Lyft will pay $38 million.

The agreement also ensures a minimum of $26 per hour for workers outside New York City and establishes a system where drivers will earn one hour of sick pay for every 30 hours worked.

Uber's statement praised the accord without mentioning the investigation into worker pay or the payout to employees.

This resolution "balances accountability and innovation while addressing the true needs of these hard working drivers in New York," said Uber Chief Legal Officer Tony West.

West described the deal as a "landmark, first-of-its-kind agreement to ensure protections like sick pay and minimum earnings in gig work.

"This helps put to rest the classification issue in New York and moves us forward with a model that reflects the way people are increasingly choosing to work," West said.

Andrew Wolf, an assistant professor at Cornell University's School of Industrial & Labor Relations, credited the New York Taxi Workers Alliance with documenting the case.

"James' settlement is remarkable because it not only makes the drivers whole for the wages stolen from them but secures a statewide right to a minimum wage and provides paid sick benefits," he said.

Categorizing the workers as independent contractors rather than employees, however, still means drivers do not have full workers' compensation benefits. Drivers also must shoulder the cost to maintain and insure vehicles, Wolf said.

Uber shares rose 6.3 percent in afternoon trading, while Lyft jumped 7.2 percent.

D.Ford--TFWP