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Uber and Lyft to pay $328 million over New York wage theft claims

By Nithya Bose in US business news, posted November 3, 2023

Uber and Lyft have reached a $328 million settlement to resolve wage theft claims in New York state.

New York Attorney General Letitia James made the announcement, with Uber contributing $290 million and Lyft $38 million.

The sum from both settlements will benefit over 100,000 current and former drivers.

The payment guarantees drivers' advantages, including mandatory sick leave and a minimum wage of at least $26 per hour, adjusted for inflation.

This agreement marks a significant development as it ensures minimum pay for Uber and Lyft drivers, especially those primarily outside New York City, for the first time.

In contrast, drivers within the city have been receiving guaranteed minimum pay since 2019, per regulations established by the Taxi & Limousine Commission (TLC).

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Letitia James, New York Attorney General, said: "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."

The settlements end multi-year investigations by her office.

The probes revealed the rideshare companies had withheld earnings from drivers and impeded their access to benefits mandated by state labor laws.

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